In its World Agricultural Supply and Demand Estimates (WASDE) issued Aug. 12, the U.S. Department of Agriculture (USDA) forecast Russia’s exports in 2016-17 at a record 30 million tonnes, reflecting a sharp increase in expected production.
The USDA raised Russia’s production forecast on “excellent growing conditions throughout the country and harvest reports showing very high yields.”
At 30 million tonnes, Russia’s wheat exports were forecast larger than the European Union, which was projected at 27 million tonnes. By comparison, in July, Russia’s wheat exports were forecast at 25.50 million tonnes and the E.U. was forecast at 34 million tonnes.
The USDA attributed the decline in the E.U. export forecast to a significant drop in French crops following a season of excessive rain.
U.S. wheat exports were forecast to increase to 25.86 million tonnes from 25.17 million tonnes on improved competitive conditions, according to the USDA.
Elsewhere, Ukraine exports were raised by the USDA by 2 million tonnes to 14.50 million tonnes, while Australia, Canada, and Kazakhstan are each expected to increase exports by 1 million tonnes, all due to increased production.
Overall, the USDA projected 2016-17 global wheat exports at 170.70 million tonnes, up from 168.43 million tonnes forecast in July.For the full report, click here.