Russian wheat replaces European wheat in the markets of Africa and the Middle East

Grains, Cereal & Legumes
Market & Price Trends
Published Apr 18, 2024

Tridge summary

In the fiscal year 2023/24, the European Union has experienced a significant decline in wheat exports to North Africa and the Middle East, with reductions of 25% and 60% respectively, primarily due to the competitive pricing of Russian wheat. Russia's wheat exports are on the rise, with a forecast increase to 52 million tons, thanks to record harvests that have bolstered its market competitiveness. This shift has altered traditional trade patterns, with countries like Saudi Arabia and Algeria turning to Russian wheat. Consequently, the EU's wheat export forecast has been adjusted down by 2 million tons to 34.5 million tons. Russia's strategic positioning in the grain market is poised to expand its global market share to over 25% by the end of the 2023/24 fiscal year, highlighting a significant shift in global wheat trade dynamics.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In FY 2023/24, wheat supplies from the EU to the countries of North Africa decreased by 25%, and to the Middle East by 60%, while the Russian Federation is increasing its grain exports to these regions. This is according to USDA's FAS Grains: World Markets and Trade report released in April. European wheat is losing its traditional markets in the countries of North Africa, sub-Saharan Africa and the Middle East due to very strong competition from Russian wheat, due to which the export forecast for the EU in the current season has been reduced by 2 million tons to 34.5 million tons, and for of the Russian Federation increased by 1 million tons to 52 million tons. Record wheat harvests in the Russian Federation improve its competitiveness in the African and Middle Eastern markets. If earlier almost 95% of the volume of wheat imported to Saudi Arabia was European grain, in 2023/24 the country began to actively buy Russian wheat due to its low price. A similar situation occurred in ...
Source: Graintrade
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