Russia to become world’s largest wheat exporter in 2016

Wheat exports from Russia are expected to set a new record this year, outpacing the biggest wheat exporters Canada and the US, reports the Wall Street Journal, citing the US Department of Agriculture (USDA).

According to USDA statistics, Russian exports this year would rise three percent to 23.5 million metric tons. US wheat exports are projected to fall to a 44-year low, to 21.8 million tons. Canada’s exports are expected to be 20.5 million tons, down from 24.1 million the year previous.

Record harvests, a strong dollar and cheap oil are the factors which could shake up the multibillion-dollar global wheat market.

While the price for wheat is falling, a strong US dollar makes American wheat more expensive for buyers using other currencies. On the contrary, a weaker Russian ruble makes the country’s exports more competitive, with long-standing US customers shifting wheat purchases to Russia.

Africa’s largest economy Nigeria was once a top US wheat customer but has cut the purchases by almost half in the past five years.

-More at RT


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