Russia dominates the grain market despite risks in the Black Sea.
(Baonghean.vn) - A report by Figaro (France) indicates that Russia has harvested a record grain crop for the second consecutive year.
According to a report by Figaro (France), cited by Ria Novosti, with exceptionally high wheat production for the second consecutive year (2022 and 2023), Russia has quite bright prospects. The country is expected to continue dominating the grain market in 2023-2024, despite shipping risks in the Black Sea.
According to Alexandre Marie, an agricultural analyst at Agritel – a company that manages price risks in the European agricultural market – Russia's dominance will continue, and is essential, as the world faces volatility in both supply and demand.
According to estimates released by the U.S. Department of Agriculture (USDA) in its August Wasde report, global bread wheat production will decline in 2023-2024 due to production cuts in Canada and Europe. World wheat supply will decrease by nearly 3 million tons to 793.37 million tons. Consequently, wheat reserves will also decrease slightly.
Against this backdrop, Russia is consolidating its position as the world's leading wheat exporter with exports of approximately 49 million tons. According to Agritel, this figure accounts for 23% of global trade – significantly higher than the average over the past five years.
The Black Sea region, stretching 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 consecutive years, Russia has been the world's largest wheat exporter, and currently holds 20% of the global market. 138 countries are customers for Russian grain.
Russian grain continues to penetrate the world market and is believed to have an advantage due to the departure of Western businesses.