Turkey extends zero-tariffs on wheat imports to April

Turkey has extended the suspension of 20 percent tariffs on wheat, barley, and corn imports until April 30, 2021, according to a presidential decree published in the Official Gazette on Dec. 17.

In a previous decree on Oct. 30, wheat import tariffs had been suspended until the end of this year.

Wheat took on greater strategic importance amid the coronavirus pandemic when countries focused on domestic consumption rather than foreign trade, and countries' wheat stocks rose significantly.

On Dec. 15, Russian Prime Minister Mikhail Mishustin signed a list of orders aimed at stabilizing food prices, including a grain export quota and a wheat export tax.

Chicago wheat futures edged higher yesterday as traders assessed the extent to which a Russian export tax may curb shipments from the world's top supplier of the cereal. The most active wheat futures on the Chicago Board of Trade were up 0.8 percent at $6.03 bushel yesterday.

Russia, which supplies wheat to major importers such as Turkey, Egypt and Bangladesh, has decided to introduce a wheat export tax of 25 euros ($30.40) per ton within a quota of 17.5 million tons from Feb. 15 to June 30 next year. If export volumes exceed the quota, the tax for wheat would rise to 50 percent of the customs price or 100 euros per ton, whichever is higher. The tax could reduce Russia's 2020-2021 wheat exports by 3 million tons to around 38.8 million tons.

Some traders and analysts expect Russian exports to be curbed, as evidenced by uncompetitive offers of Russian wheat in a tender held by Egypt on Dec. 15.

However, with year-end holidays approaching and a bumper Australian harvest coming in the market, the impact on wheat export markets may not be clear immediately, according to...