Russia is pushing into the regular clientele of the European and U.S. competition and surpassed Europe as the world's largest wheat provider in this marketing period for the first time.
It is expected a record grain harvest in Russia 2016/17 while small is the crop in the EU. As a result, that dealer will deliver Russian wheat in the countries, you rarely or never has operated from there. The competition will be very tough, predict that dealers in Moscow.
The occupation of new markets with Russian wheat is likely to trouble arge the large exporters in the world, because the providers from North America, Europe and Australia need to compete with the low-cost provider of Russia.
In the first eight weeks since the beginning of the marketing period, Russia has already supplied wheat to Mexico, which is usually supplied with wheat from the United States. There were also concluded with Algeria and Morocco, whose master supplier is France. Continue to wheat was loaded for a long time back to Mali, Malta and Myanmar. In addition, Russia has agreed in February with Indonesia on new quality standards. There they bought so far primarily wheat in Australia.
The USDA was assumed in the latest WASDE report that Russia will export 30 million tons in 2016/17, the EU but only 27 million tonnes, as France and German wheat harvests are considerably smaller than in the previous year.
This trend shows how much the Agriculture of Russia and its former Soviet partner countries Ukraine and Kazakhstan has changed in recent years. During Soviet times, Russia was still the most important grain importer in the world.
The small French wheat harvest favored shipments from the Black Sea region and it will be a great challenge to regain lost markets, complain about French traders.
Competition with Russia for the clientele in Mexico most hurts the U.S. exporters, because in the United States a wide range of cereals already driving up prices at the lowest levels for decades. One-third of its wheat imports can get Mexico through the deep sea port, of which Russia might get the lion's share. Russia will expand also its delivery after Egypt, his traditional customers. The supplies to Bangladesh and Mozambique as well.
Russia has increased three years in a row now its grain harvest due to good weather conditions and a weak exchange rate of the ruble. This puts the farmer in the country in a position to increase their investment in agricultural production, which is also fostered by the State. The Exportsaison 2016/17 will be longer for Russia, as so far, already in the first months of the season is a big selling pressure. Other farmers do not hurry a good budget and it, for sale. The buyers of the world but also know that the offer on the world is excessive and wait for their orders. So will move the Exportsaison from the harvest months too much in the winter.
