December 30, 2008

Russia and Ukraine grab world grain market shares

Countries of the Black Sea region, especially Russia and Ukraine, are expected to grab some grain market shares away from the US, according to The Wall Street Journal.

Russia and Ukraine have greatly increased their positions on the world grain market, but the US is not about to lose its place as the largest wheat exporter, said analysts.

To date, the Black Sea region is one of the five leading grain exporters in the world.

Analyst Rudolph Bulavin expects Russia and Ukraine to increase their wheat export shares on the world market on the expense of the US.

Favourable weather conditions in 2008 increased Russia and Ukraine's wheat harvests by 28 percent on-year to a record level of 63 million tonnes, according to the USDA.

The Journal said Russian and Ukrainian wheat  flooded the market, sidelining the more expensive US wheat.

The USDA forecasts that 12 countries of the former USSR in 2008 will export 23 percent of the general global wheat shipments, up from 3.4 percent in 1998.

Russia will export more wheat than drought-harrassed Australia and Argentina. Russia will export 14 million tonnes, said the USDA.