Russia for the first time overtook the United States in wheat exports to China

According to the Rusagrotrans analytical center, Russia exported 275,000 tons of wheat to China, while the United States supplied 147,000 tons. China has reduced grain imports due to a record harvest, but in eight months it still imported about 1 million tons of products, including 275,000 tons of Russian wheat and 0.5 million tons from Canada. Small volumes were shipped from EU countries and Australia. Since March 10, Beijing has imposed a 15 percent tariff on U.S. wheat imports, allowing Russian exporters to squeeze the Americans. Russia has expanded its presence in the global wheat market thanks to foreign trade agreements with China, including a 12-year contract to supply 70 million tons of grain. Vadim Petrov, a member of UNESCO’s Intersessional Financial Advisory Group (IFAG), noted that the increase in Russian exports was also facilitated by changing supply routes, tightening quality control standards and increasing cross-border trade costs for the United States. Large volumes of U.S. grain – to 1-2 million tons per season – were gradually reduced in favor of supplies that did not require such complex coordination procedures. U.S. attractiveness to Chinese importers has been declining. Russia, on the contrary, managed to take advantage of the changed geopolitical balance and significantly expanded its presence in the world wheat market, the analyst said. In early February, the Russian government reduced the duty on wheat exports from Russia by 11% – from 4,430.1 rubles to 3,941.6 rubles per ton. Earlier, the Cabinet set a quota for wheat exports in the first half of the year. From February 15 to June 30, 10.6 million tons of wheat can be exported from Russia. The export of barley, rye and corn during this period is prohibited.

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