USDA: Russia Dominating World Wheat Market

Back in the 1980s and 1990s, for Russia to feed its people, they had to purchase a large amount of U.S. grain, particularly wheat.  However, a lot has changed over the past 30 years.

“Russia has emerged over the past few decades to be the dominant global supplier of wheat," noted USDA Outlook chairman Mark Jekanowski.  He added roughly 25% of all wheat purchased and sold around the world comes from Russia.  In fact, he said, Russia's prolific wheat production and exports have made global wheat supplies abundant and maybe one reason for U.S. wheat acreage steadily declining over the past 50 years.  Jekanowski added farmers in Russia and other nations.

“Expanded production of kind of developed more of a competitive advantage in wheat where our competitive advantages you know really emerged more in corn and soybeans and other crops.”

Jekanowski said over the last few months, Russia's wheat exports have soared to record high levels, which is one reason why USDA is forecasting wheat prices to average $1.36 below last season.

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