Russia has announced the suspension of its floating export duties on grain until the end of 2026, keeping the export duty rates for wheat, barley, and corn at 0% to address the crisis caused by the disruption of exports through the Black Sea and the Sea of Azov due to Ukrainian attacks, which have affected routes accounting for over 70% of total exports. The Russian Ministry of Economic Development stated in a press release on Wednesday (September 2) that the decision was made due to the need to restructure the logistics system, with the new duty rates to remain in effect until December 31. Meanwhile, the export duty on sunflower seed oil will be frozen at the August level. Russia and Ukraine, which together account for more than a quarter of the world's wheat exports, have escalated attacks on cargo ships and ports in the Black Sea and the Sea of Azov, driving wheat futures prices to their highest level in three years. Russian wheat exports in August fell by more than half compared to the previous year, while SovEcon expects September exports to potentially drop to their lowest level since 2010. Despite Russia shifting to Baltic Sea ports, their limited capacity cannot handle the export volume of up to about 60 million metric tons per marketing year.
Russia suspends grain export duties, but Ukrainian attacks disrupt Black Sea exports, reducing supply and supporting wheat prices.
Russia suspends grain export duties, but Ukrainian attacks disrupt Black Sea exports, reducing supply and supporting corn prices.
