Russian wheat tax rise a positive for Australian wheat

Australian wheat exports should be one of the big winners from Russia’s wheat export tax boost.

Export boost: Australia, with its reasonably priced and high quality wheat, could be one of the major winners of the tax. PICTURE: ZOE PHILLIPS

THE  world’s largest wheat exporter’s introduction of a higher export tax could provide significant benefits for Australian wheat growers.

Russia’s imposition of the $80/tonne tax from this month until June has hit prices, resulting in global buyers looking for new supply sources, according to a recent ANZ’s Agri commodity report.

The tax is almost double its previous level of $39/ tonne.

Russia’s lifted the tax to reduce domestic wheat prices and ensure food security.

And Australia, with its reasonably priced and high quality wheat, could be one of the major winners of the tax, according to ANZ.

“The move by Russia, the world’s largest wheat exporter, to impose export taxes on its wheat will bring a renewed focus to Australian wheat,” ANZ’s Michael Whitehead said.

The tax comes after Australia’s near record harvest this season, and ANZ said this could bring benefits in price and export market share.

“With Russian wheat now more expensive than comparable Australian varieties for the first time, importers will increasingly seek the Australian product,” ANZ said.

The report showed the largest importers of Australian wheat were the Philippines, South Korea and Japan, while the largest global importers of the commodity were Egypt, Indonesia and Turkey.

Meanwhile, China’s “ongoing major purchases” of corn are also expected to affect global grain and oilseed markets.

“China’s purchases of corn from the United States has increased sharply, driven by a poor recent harvest, a need to ensure reliable feed for China’s rebuilding pig herd, and a quest to replenish domestic feed stockpiles and return to a greater level of feed security,” ANZ said.

“This could well have positive flow-on effects for Australia’s wheat exports, as Chinese buyers seek to procure supplies to add to their feed mix.”

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