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Russia set to overtake EU as world's leading grain exporter

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Staff Writer | October 8, 2016
The UN Food and Agriculture Organisation (FAO) has declared that the world is headed for record wheat production this season.
Russia wheat
Food export   With wheat, rice and potentially oilseeds
With wheat, rice and potentially, after a bumper U.S. soybean harvest, oilseeds all on track for record production, the Rome-based agriculture organisation said food markets are likely to remain “generally well balanced” over the coming year.

FAO said in a release on Thursday that “Record global production forecasts for this year's wheat and rice harvests, along with rebounding maize output, are helping keep inventories ample and prices low.”

Worldwide cereal production in 2016 is set to rise to 2,569 million tonnes, up 1.5 percent from 2015. FAO has wheat production pegged at 742.4 million tonnes this year, with India, the USA and Russia leading production increases; Russia is poised to overtake the EU as the world’s largest wheat exporter, according to FAO analysts.

Projected wheat use is also set to jump, but FAO remains confident that the levels of production seen will keep supplies ample and prices low.

In fact, as a result of these rises, the total value of food imports is expected to fall by 11 percent in dollar terms this year.

According to FAO, cereal-based foods and animal products will record falls that offset rising fruit and vegetable prices.

However, less economically secure areas of the world, whose currencies are generally depreciating are likely to be slower to benefit from this state of affairs.