Ukraine, Kazakhstan and Russia will increase wheat exports by 4%

According to a Reuters poll of 19 representatives of the grain market in 2019/20 MG Ukraine, Kazakhstan and Russia will increase wheat exports by 4% to 63.2 million tonnes, which will increase competition with the EU. Favorable weather conditions in the winter were more powerful than the June heat, so the wheat harvest in the region will grow by 8.5% to 120.4 mln t

Most of the wheat, these countries export the Black sea to Africa and the Middle East, who are simultaneously buyers of wheat in the EU, where this season's harvest will also increase.

However, Russia, which remains the world's largest exporter of wheat, the local Agency IKAR and " SovEcon reduced crop forecasts in the result of the June heat.

According to preliminary data, this year the quality of the wheat in Ukraine and Russia will be better than usual, which will increase competition between countries and will allow to keep prices at a high level. Due to the heat of June, the wheat of the new harvest will be higher protein content, and significantly increase the share of food grains.

Among the factors that may affect the export of wheat from Russia, experts have called the stagnation of production poultry and slower growth in pork production, which will reduce domestic consumption of grain.

The Largest grain producer in Central Asia – Kazakhstan will begin harvesting in September. According to the Agency Agritel, in recent years the country has reduced the export of flour through the increase of the capacity of milling enterprises in the countries of Central Asia.

GrainTrade