
Russian domestic production has been increasing at 5% per annum since 2014, thanks in part to the Russian government’s decision to ban the import of food from Western countries in retaliation for the sanctions imposed after its annexation of Crimea. Back in August, Russia sent shock waves through the world markets when it predicted that this year’s crop would come in at 81 million tonnes, almost 10% more than last year’s volumes.

On the back of its military intervention in Syria, Russia has become a significant supplier of wheat to the Middle East in recent years and has both increased exports to traditional markets such as Turkey and gained access to new ones, including Morocco and Algeria in a bid to offset the economic impact of the collapse in oil prices. Russia is now the world’s largest exporter of wheat and flour, with wheat exports up by 20% so far this season while shipments from the EU have dropped by 25%. Last month, cheaper Russian exports prompted US Wheat Associates (USW), the export market development organisation for the US wheat industry, to announce that that it would be closing its office in the Egyptian capital Cairo at the beginning of December.
Source: Bloomberg