Russia dominates grain market despite Black Sea risks
(Baonghean.vn) - A report by Figaro (France) said that Russia has harvested a record grain crop for the second consecutive year.
With exceptionally high wheat production for the second consecutive year (2022 and 2023), Russia has quite bright prospects. The country will continue to dominate the grain market in 2023-2024, despite risks in transportation in the Black Sea, Ria Novosti reported, citing a report by the French newspaper Figaro.
Russia’s dominance will continue, and is essential, as the world faces fluctuations in “supply” and “demand,” said Alexandre Marie, agricultural analyst at Agritel, a company that manages price risk in the European agricultural market.
Global bread wheat production will decline in 2023-2024 due to production cuts in Canada and Europe, according to estimates released by the US Department of Agriculture (USDA) in its August Wasde report. World wheat supplies will fall by nearly 3 million tonnes to 793.37 million tonnes, with wheat stocks also expected to decline slightly.
Against this backdrop, Russia is consolidating its position as the world’s leading exporter, exporting approximately 49 million tonnes of wheat. According to Agritel, this represents 23% of global trade – significantly higher than the average over the past five years.
The Black Sea region, from Russia to Bulgaria via Ukraine and Romania, accounts for 40% of the world’s wheat exports. However, the region’s export capacity is now under threat due to escalating tensions between Russia and Ukraine.
For many years in a row, Russia has been the world's largest wheat exporter, and currently accounts for 20% of the global market. 138 countries are customers of Russian grain.
Russian grain is still penetrating world markets and is said to have an advantage due to the departure of Western businesses.
