The Russian Federation and the USA - two of the world's largest exporter of wheat - faced foreheads in the battle for customers, while taking advantage of the weakening of the national currency and the fall in freight rates, Russian suppliers will sell the grain at 16% cheaper than American manufacturers.
but at the same time, U.S. dominance in the global market have been declining for 2 decades, and the shipments from the black sea region increase, even traditional buyers of wheat from the U.S. is increasingly often prefer Russian, writes Bloomberg (translation provided by the Center for current politics).
Falling oil prices have dealt a serious blow on the Russian economy, in the past year, the ruble has lost 45% of its value. But it helped to make exports more competitive and weakened the purchasing opportunities provided by energy grain importers such As Mexico and Nigeria." Russian wheat is much cheaper - drew the attention of GAFI Usman, charg? d'affaires of the Embassy of Nigeria in the Russian capital.- More wheat will be imported from Russia. Most of the agricultural population of Nigeria could not afford to buy products made from American wheat ". Competition for market share increase and several that followed, one after another, the bumper harvests of wheat in the world, granaries overflowed. According to information from the international grains Council, now has the largest accumulation of wheat in the last 30 years, which puts pressure on the price of wheat in Chicago, in Paris and the Russian port city of Novorossiysk. On the Chicago Mercantile exchange in the past month the price of wheat fell To the lowest since may 5 indicators - 4, 63 dollars per bushel. Nigeria, ogromneishee economy in Africa and one of the main consumers of wheat in the US, 2 times in the last 5 years have reduced their purchases from America. According to the us Department of agriculture, 17% of its wheat Nigeria buys from Russia and Ukraine, although two years earlier the Share was not more than 1%. Mexico reduced the import of wheat from its North American neighbors to 7, 5% in the past year, while sales in the current market year (started from 1 June 2015) dropped by 29%. The black sea region increased its share in the Mexican market from zero To 12% in the last two years. The Ministry of agriculture of the USA predicts that this year Russia will deliver a record 23 million tons of grain, which is slightly below the expected exports from the USA in 25, 2 million Tons. The share of the American side on the global grain market fell To 16% from 30% in 2008. Once public, the consumer of grain from Egypt was purchased from the US To 90% of its wheat imports. Last year this figure fell To 7%, while Russia's Share increased To 25%." Until now the competitiveness plays for the Russian Federation, - said Stefan Vogel, head of research at Rabobank agricultural products (London).- Right now I don't consider the US As the main source of supply to the world market ". As reported by the print edition opinion, the "lean years" when the grain was bought in Canada, behind, the production volumes in Russia are growing, But now the grain in the country is difficult to keep the ? more profitable to export. Also there was a question of import substitution: Russian bread is still not up To the end of the Russian, and without specific measures, it is quite likely to grow.