Black Sea region ousts EU and USA from the traditional wheat markets

26.08.2016

Olena Hesova – grain and oilseed markets analyst at "UkrAgroConsult "

Second season in a row Russia, Ukraine and Kazakhstan exported record high volume of wheat, leaving behind such top-exporters as USA and EU countries, informs UkrAgroConsult.

wheat export dynamicsDespite another record in world wheat production in 2016/17 (+1,2% to 743.44 MMT according to USDA), meaning tougher competition on key wheat export markets, situation looks promising for the Black Sea countries.

In 2015/16 season we should note a considerable breakthrough of Russia to the second place among the top wheat exporters. Increasing the export volumes by 10% compared to the previous season, Russia ousted such large exporters as Canada and USA.

Leaving at the fifth place on the list of top world exporters, Ukraine continue to impress with victories on growing Asian markets, ousting mainly Canada and EU. In 2015/16 shipments of Ukrainian wheat to the foreign markets grew by +56% compared to the previous season.

Kazakhstan increased its wheat shipments by 6.2% in 2015/16. The country was able to export more not only to its key markets (CIS countries), but also to increase supplies to Turkey, China and Iran.

According to UkrAgroConsult, having gathered record high volume of wheat in 2016/17, Russia, Ukraine and Kazakhstan will be able to export additional volumes to the traditional EU markets and replenish the deficit of European supplies, provoked by low wheat crop in France this year.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

 

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