IKAR in Mass and Industry Media

Russia dominates global wheat market

rt.com

For the second year running, Russia is the world's top wheat producer with exports of 22.5 million metric tons of grain this year, according to the US Department of Agriculture.

Russia has won contracts to exports 120,000 tons of wheat to Egypt. In the fall, as soon as the new crop is harvested, Russia will start supplying wheat to China, according to the Agriculture Ministry.

The country’s leading position in the global wheat market is because of its low-price strategy which has increased its market share.

The weakened national currency, favorable weather conditions as well as more investment has pushed forward Russian agriculture and unseated the US as the world’s biggest wheat exporter.

The Black Sea region, including Ukraine and Romania, traditionally takes the lead at the start of the season with French exports catching up later.

However, this year France is out of the league of top wheat sellers after heavy flooding waterlogged fields and increased concerns over the grain quality. The soggy fields reduced crops by 17 percent to 34 million tons this season, according to German agriculture consultant BayWa.

https://www.rt.com/business/352272-russia-lead-wheat-market/

09.09.16

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