Russia returned its wheat export leadership to the USA

09.08.2017

The 2016/17 wheat season in Russia is over, but it passed far not smoothly. While some plans were realized successfully, the implementation of others was prevented by a number of known bearish factors (grain quality deterioration, a duty, volatility of the rouble, problems stemming from Egypt’s ergot content restrictions, a conflict with “Turkish tomatoes”, a domestic market conflict, aggravating competition in the region and worldwide etc.).

Altogether, according to preliminary information, Russia exported 27 MMT of wheat in the 2016/17 season out of its ambitious target of 30 MMT. Thus, in the past season, Russia returned again its global wheat export leadership to the United States. According to UkrAgroConsult’s estimates, US wheat exports totaled some 28 MMT in MY 2016/17.

As a reminder, Russia, for the first time ever, sidelined the world’s top wheat exporter – the USA – in the previous 2015/16 season, when Russian wheat supplies to foreign markets totaled 24.6 MMT against America’s 21.2 MMT (according to the USDA).

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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