Russia. Grain interventions 2016 & 14 Dec

15.12.2016

Purchasing interventions in the current season once again held at the National commodity exchange (NTB)

The state on Wednesday, December 14, bought from farmers 22 275 tons of grain (out of a proposed 23 625 tons), totaling 218 713 500 rubles this was reported NTBs.

Main purchased volume was wheat class 4 – 20 925 tonnes to the amount of 207 555 750 rubles. To the list offered at auction grain back wheat 5 class – it was purchased in the amount of 1 350 tonnes, the amount of purchases made 11 157 750 rubles. The 3rd class wheat and barley in the auction did not appear.

The average prices of purchase of grain as of 14 December was as follows:

    wheat of 4 class – 9 919,0 roubles/t;
    wheat 5 class – 8 265,0 RUB/t

The mechanism of procurement (procurement by the state grain) and commodity (selling grain from the state intervention Fund) intervention operates in Russia since 2001. It is aimed at the stabilization of prices on the grain market and support agricultural producers. When prices fall, the government removes excess grain from the market in order to stop its depreciation, with a sharp rise in prices – is selling grain from the state Fund and thereby stops its rise in price.


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