BW story discuses surge in wheat exports from Russia. It now represents 14% of world exports up from less than a percent in 2000. US exports are down from 26% to 19% over the same time.The crop markets are very dynamic. Small changes in the weather or incentive schemes may have significant impact on prices. The Russia wheat production is a perfect example. A surge in productivity has made it as competitive as US wheat. Russia last year produced 61 million tonnes of wheat. In the late Soviet period, it was importing 35 million metric tonnes.
Production is expected to be down 5% this year. USDA expects that Russia will be the largest exporter of wheat in the world while the US will focus more on corn and soybeans where there is a greater comparative advantage. The move to ethanol in the US has also forced a reduction of wheat production. The global farming market will be more competitive and may be more in the hands of governments.
Production is expected to be down 5% this year. USDA expects that Russia will be the largest exporter of wheat in the world while the US will focus more on corn and soybeans where there is a greater comparative advantage. The move to ethanol in the US has also forced a reduction of wheat production. The global farming market will be more competitive and may be more in the hands of governments.
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