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.
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