As reported Wall Street Journal citing data from the Ministry of agriculture of the USA, this year Russia will become the largest exporter of wheat in the world. According to experts, it will send to the market of 23.5 million tonnes, 3% more than last year.
The publication explains this by the fact that the dollar rose significantly against world currencies (WSJ dollar index shows that it is so expensive the US dollar was worth last 13 years). In these conditions, to buy American wheat in the world, it became unprofitable. As expected, the volume of exports from the U.S. will decrease to 21.8 million tonnes, the lowest level in the last 44 years. Fell exports and from Canada (from 24.1 to 20.5 million tons).
In this situation Russia has appeared the opportunity to sell wheat in the country, which previously dominated Canada and the USA. As an example, the magazine says Egypt, Nigeria, and Mexico.
Another country benefiting from the reduction of import volumes from the U.S. and Canada, WSJ calls Argentina. This is due both to declining peso and the Argentine government’s decision to abolish the tariff on wheat exports.
In 2014, the government had obliged exporters to pay for wheat grain exports, fearing that a significant portion of the harvest will go abroad. October 1, 2015, the authorities decided to reduce the minimum amount of the fee five times. In addition, from the application of the duty was derived durum wheat used for pasta production.