Russian corn reinforcing its position in the world market

13.07.2017

The 2016/17 grain season in Russia ended not very successfully. As UkrAgroConsult mentioned before, the country failed to realize its wheat and barley export potential for a number of reasons. However, a much more interesting and positive situation is seen in the corn market. Although the end of the corn season is still two months away, export deliveries from Russia have already set an all-time record, UkrAgroConsult notes.

In the current season, Russian exporters have managed to step up corn supplies to their traditional end markets and successfully enter new ones.

This season witnessed a happy finding for Russian corn: the market of Vietnam, which has already absorbed 16% of corn total exports from Russia (at the time). In addition, Vietnam’s demand also supported Russian corn prices in 2016/17 season.

Russia increased shipments to Iran’s market 4.6 times in September-June 2016/17 against exports for the whole 2015/16 season. Russian corn successfully entered the Japanese market.

Growth of these countries’ demand for its corn offset the drop in demand for Russian product from major end markets such as the European Union, Turkey, Lebanon and Syria.

Corn has already become Russia’s key export crop among coarse grains. And, judging by farmer sentiment, its further production in the country will only expand.

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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