Russian wheat hits American farmers
Strange as it may sound, now is a very good time for Russia to make a breakthrough in many industrial and industrial areas. The US is “fighting” with China, Europe is very unhappy with Trump, Iran is again “under siege,” the Middle East is already beginning to doubt with whom to “swim.” We must not miss this moment.
Moreover, it is reported that while Russia is rapidly increasing its wheat exports, American farmers are closing their enterprises at a rate not seen since the 1980s.
Record harvest and export volumes of Russian wheat threaten the well-being of US farmers, who are less likely to compete in this market, The Wall Street Journal writes.
Grain prices on world markets have been falling for several years already, but Russian agriculture is booming. According to the newspaper, the Russian Federation exported more than 40 million tons of wheat for the past agricultural year (ended June 30), that is, about two times more than a year earlier.This figure is the largest for any country in the last quarter of a century, the newspaper writes.
In 2016, Russia ranked first in terms of wheat exports, pushing the United States, and in 2018 also repeated the record, TASS reports citing the WSJ material.
In addition, US trade disputes with China and other countries could make Russian wheat even more attractive if the largest importers introduce retaliatory duties on American grain, the newspaper notes. China has already introduced tariffs in the amount of 25% for wheat from the United States, but so far Moscow has not been able to take advantage of this because of Chinese import restrictions, including from the Russian Federation, the newspaper writes citing experts.
Economic Development Minister Maxim Oreshkin said that Russia, along with China, is assessing the possibilities of replacing part of American goods in trade with China.
The head of the Ministry of Economic Development told reporters as part of the II Eurasian Women's Forum, held in St. Petersburg on September 19-21. Maxim Oreshkin noted that the "trade war" between the United States and China will have a negative impact on the growth rate of the world economy, but it also opens up certain opportunities for Russian goods on the Chinese market.
As the publication emphasizes, another advantage of Russian grain is its price, which is associated with a depreciation of the ruble against the dollar. "The quality of grain from the Russian Federation has become better, and it is cheaper," the newspaper quotes the words of Svitan Still, director of Solaris Commodities, which, in particular, sells Russian grain.
As previously reported, in 2017 Russia harvested a record grain harvest of 135.4 million tons. Harvest in 2018, according to the forecast of the Ministry of Agriculture of the Russian Federation, is expected to be 105 million tons. In September, the Ministry of Agriculture, which had previously announced expectations 2018-2019 agricultural year (started July 1, 2018) in the amount of 44-45 million tons, lowered the forecast figure to 35-37 million tons.