U.S. Stands to Pick Up Wheat Exports Forfeited by Russia
WASHINGTON, D.C., August 12, 2010 – The United States stands to gain a good share of the wheat export market that Russia is forfeiting due to the Russian government’s decision to halt grain exports until the end of the year, according to John Anderson, an economist with the American Farm Bureau Federation.
The Agriculture Department today released its August World Agricultural Supply and Demand estimates or WASDE report. In the report, USDA projected a huge drop in Russian wheat exports for the 2010-2011 marketing year: 3 million metric tons, compared to 18.5 million metric tons, in the 2009-2010 marketing year. Russia decided to exit the grain export market this year because of a serious drought that is reducing crop prospects.
“This is a jaw dropping reduction in exports for Russia,” Anderson said. “And because the United States is expecting a good wheat crop with good stock levels, our farmers stand to take up a big share of wheat exports that would have gone to Russia.”
U.S. all wheat production is estimated at 2.26 billion bushels, up 2 percent from the July forecast and up 2 percent from 2009, according to the latest WASDE report. USDA is also projecting the highest U.S. wheat yield ever at 46.9 bushels per acre, up 1 bushel per acre from July and up 2.5 bushels per acre from last year.
The U.S. stands to pick up export business because of expectations for a good crop and large wheat stocks, at just under 1 billion bushels.
“The United States should pick up almost half of the wheat exports that would have gone to Russia,” Anderson said. “We have wheat when the other major exporters don’t have as much wheat.”