The Russian government introduced a six-month ban on shipments of durum wheat abroad on December 11. Export restrictions will last until May 31.
The reason is the need to ensure the domestic market and stabilize prices for pasta.
The document provides for exceptions. In particular, the ban will not apply to:
- supplies for the provision of international humanitarian assistance and within the framework of intergovernmental agreements,
- export of durum wheat from Russian territory to Abkhazia and South Ossetia,
- export as supplies.
As for supplies to the EAEU countries (Armenia, Belarus, Kyrgyzstan, Kazakhstan), shipments are allowed within the framework of quotas that will be established by the Russian government. You will also need permission from the Russian Ministry of Agriculture.
Note that in July-November 2023, Russia exported 0.5 million tons of durum wheat to Italy, which is 2.5 times more than for the entire 2022/23 agricultural season (0.2 million tons).
Kazakhstan needs about 50 thousand tons of durum per year, this volume is completely covered by its own production.
Meanwhile, world prices for soft wheat began to rise after a long period of decline. Export prices for Russian wheat (protein 12.5%) for delivery in December-January increased by $3 over the week, to $240/tonne (FOB). The price of American wheat immediately strengthened by $33, to $273/ton, for French wheat - by $3, to $250/ton.
The rise in prices comes against the backdrop of active purchases from importers and problems with the harvest in Latin America and Australia.