Commodities intervention participants buy 2,700 tonnes of grain worth 29.7 mln rubles

TASS Russian News Agency | Jul 2, 2020 at 3:00 PM

MOSCOW, July 2. /TASS/. Russia's National Mercantile Exchange sold 2,700 tonnes of grain totally worth 29.7 mln rubles ($423,000) within state commodities interventions, the Exchange said in a statement on Thursday.

"Another round of stock trading has been held at the National Mercantile Exchange as part of state commodities interventions for regulation of the market of agriculture products, commodities and food, at which 2,700 tonnes of grain totally worth 29.7 mln rubles were sold," the statement said.

That brings the total volume of grain sold since April 13 when interventions started to 1.507 mln tonnes worth 18.17 bln rubles ($258.7 mln).

However, according to the data provided by the Agriculture Ministry, considering dissolved contracts, the volume of virtually sold grain is smaller. The ministry reported on June 25 that 1.36 mln tonnes of grain were sold from the fund, which accounts for 90.9% of 1.5 mln tonnes planned to be sold.

The next round of trading is scheduled for July 3.

Russia introduced the practice of state interventions on purchase and sale of grain (commodities) in 2001 to regulate domestic prices. In autumn, after the harvest gets to the market prices decline, which is why the state purchases grain from farmers to support them, while in winter and spring the state sells grain from the intervention fund to prevent an upsurge in prices.