Russia Becoming Wheat Powerhouse

Wheat acreage has been dropping in the U.S. for several years now, but in Russia, they will be expanding for the fifth consecutive year.

Director of Solaris Commodities, a Swiss trading firm, Swithun Still, said Russia is now the largest wheat exporter in the world.

“We’re up around 16 percent of total world exports. It’s cheap to grow and farmers make money unlike here in the U.S. That’s why there’s more production.”

That large production has cut into U.S. markets around the world and perhaps surprisingly with out neighbor Mexico according to Still.

“Which seems amazing given the freight advantage that you have out of the gulf. Maybe Russia will be doing more wheat if you're really going to build that wall. We’ll see.”

Russia does many challenges including lower production per acre, pests, logistical challenges, but the wheat is selling but it’s the right price for good quality.