Russia to hike wheat export duty again next week

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The export duty on Russian wheat will be increased from $61.3 to $67 per ton on October 27, the Ministry of Agriculture said. Duties on corn will also be hiked to $49.7 per ton.

At the same time, export duties for barley will be lowered from $45.9 to $42.6 per ton.

The export duty rate is calculated at an indicative price of $295.8 per ton for wheat, $245.9 for barley, and $256 for corn. The new duty rates will be in effect until November 2.

This summer, Russia introduced a grain damper mechanism, which provides for floating duties on the export of wheat, corn and barley. The duty is 70% of the difference between the indicative price and the base price. Market participants transmit data on contracts to the Moscow Exchange to form the calculation of the indicative price. The base price for wheat is $200 per ton; for corn and barley, $185 per ton. Based on that information, the Ministry of Agriculture determines the amount of duty for a period of one week.

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