Russia’s Grain Exporters Union began publishing indicative export prices for Russian wheat on Tuesday, following discussions on exports during a meeting between agriculture ministry officials and leading exporters last week.
The union said the indicative export price for wheat with 12.5% protein content on a free-on-board (FOB) basis from the Black Sea port of Novorossiysk was $240 per metric ton for October, $245 for November and $250 for December.
The figures are based on a poll of the union's members, which represent 80% of Russia’s total grain exports.
"The members of the union agreed to calculate and provide the market with price guidelines based on our understanding of fair export quotations, taking into account rising production costs, high interest rates and payment delays," the union’s head, Eduard Zernin, told Reuters.
Zernin added that it will be up to individual exporters to decide whether to follow the guidance provided by the published prices.
Two sources with direct knowledge of the matter told Reuters last week that the ministry asked exporters not to sell wheat by tender to international buyers below a minimum price of $250 per metric ton, effectively introducing a price floor.
The regular publication of the indicative prices marks the first attempt by the world’s largest wheat exporter to establish its own pricing mechanism for exports. The union had previously accused some exporters of selling too much wheat at too low prices.
