Russia on Pace to Become World’s Second Biggest Wheat Exporter – SovEcon
A weak rouble, lower available supplies from key global producers and increasing market share taken away from the U.S. and Canada, has put Russia on pace to become the second largest wheat exporter in the world, according to SovEcon.
After a record breaking 2015 harvest of 61 million tons, and low prices due to a weak rouble, Russian wheat exports are historically high this crop year, which ends June 30.
"Total [Russian] grain exports will reach 33.0-33.5 million tons, including 23.0-23.5 million tons of wheat, which makes Russia the second largest wheat exporter after the European Union for the first time," states Moscow-based consultancy, SovEcon in a recent report, reports the Economic Times.
With projected total grain exports of between 33 and 33.5 million tons, including wheat exports of between 23 and 23.5 million tons, the U.S. Department of Agriculture (USDA) also expects Russia to become the second largest exporter after the EU this year.
The weakness of the rouble that has supported Russian exports however, has recently begun to reverse, strengthening to 67 against the dollar from a low of 85.99 in January, lessening the competitiveness of Russian grain exports for March are expected to top 2.3 million tons including 1.4 million tons of wheat, which is a month on month decline, but represents a year on year increase.