A new futures market was launched this month.

The collaboration between VTB Capital and the Moscow Exchange saw Russia’s first wheat delivery futures begin on 21 December.

The physically delivered contract will see wheat specifications at a minimum of 12.5% protein and 13% moisture content.

Prices are being quoted in rubles per metric tonne.

Contract prices on the market will be available for the months of March, September and December.

Export tax

Andy Doyle recently reported on rumours of an export tax on Russian wheat in the grain trends report.

If implemented, the export tax is expected to equate to about €22.45/t and to come into effect from February to June.

According to the UK's Agriculture and Horticulture Development Board (AHDB), this tax will be on top of a 17.5 million tonne grain export quota.

Both actions should help to decrease grain prices in the country and stabilise food prices.

The move may also help to support global wheat markets in the coming months.

2021 production

In the latest World Agricultural Supply and Demand Estimates report released by the United States Department of Agriculture for December, Russia’s wheat production was raised for 2020/2021 by 500,000t to 84 million tonnes.