Russia is about to become the world's largest exporter of wheat

Wheat exports from Russia are expected to outpace the European Union this year, according to the US Department of Agriculture (USDA), according to which Russia will become the world's largest exporter for the first time.

Russia's exports are expected to grow 4.5 million tonnes in 2016/17 to a record 30 million tonnes on the back of a sharp increase in production. Wheat harvest rose 7 million tons to a record 72 million amid excellent conditions across the country.

According to USDA statistics, EU exports this year will be reduced by 7 million tons to 27 million due to a significant drop in French crops after a season of excessive rain.

US wheat exports are expected to rise 700,000 tonnes to 25.5 million tonnes on a sharp decline in EU exports, which will benefit North American suppliers, the report said.

Ukraine will also get a good harvest, with an increase in projected exports of 2 million tons. Australia, Canada and Kazakhstan are each expected to increase exports by 1 million tonnes due to increased production.

The report says global demand is outstripping supply. “Global use is growing due to an increase of 3.2 million tonnes for feed in Russia, an increase of 800,000 tonnes in the US, and an increase of 400,000 tonnes in Afghanistan,” the USDA said.