Russia’s attempts to set a minimum price for exported grain, so as not to lose part of its income, led to a negative result.
A major deal between Cairo and Moscow for the Indian purchase of 480 thousand tons of Russian wheat, which was announced in early September, was disrupted. The Indian authorities refused to purchase grain after its price on the market was below the price threshold that the Russian Federation is trying to keep at $270 per ton.
According to BloombergMoscow is seeking to set an unofficial minimum price for grain sold so as not to lose part of its income, but such actions lead to negative results.
According to sources, the price threshold can be enforced by the Russian government by refusing to issue export documents if the deal is concluded at a lower price. Such actions by the Russian side lead to buyers renegotiating agreements or even abandoning them, which is what happened in the case of Egypt.
After abandoning the deal with Russia, the Egyptian side decided to purchase the specified volume of wheat from other exporters. As a result, an agreement was reached on the purchase of French and Bulgarian grain.
Today, wheat prices on the world market are at their lowest level in almost three years. At the end of June and beginning of July, they jumped against the backdrop of Russia’s unilateral withdrawal from the grain deal, but then stabilized.
Let us recall that the decline in wheat prices was influenced, in particular, by the fact that Ukraine began to establish alternative route export of its grain across the Black Sea.
Let us remind you that the day before from the port of Chernomorsk it turned out another commercial ship with Ukrainian wheat. There were 3 thousand tons of grain on board. Another cargo ship, loaded with 17 thousand tons of wheat, will soon head to Egypt.
Author:
Artem Malinovsky
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2023-09-20 19:11:18
