RUSSIA – Russia has successfully secured its position as one of the top three wheat suppliers to China, with exports totaling US$17.9 million by the end of August 2024, according to the General Customs Administration.
This marks a significant milestone, positioning Russia just behind Canada (US$56.3 million) and the United States (US$24.7 million).
This growth in exports highlights Russia’s expanding role in the global wheat market, overtaking competitors like Kazakhstan (US$12.2 million) and Australia (US$10.5 million) in wheat exports to China.
Russian wheat exports have experienced steady growth throughout 2024. By July, shipments to China had increased 5.5 times, reaching a total of 35,900 tons. The July export value alone was US$9.4 million, marking a 5.4-fold annual increase.
Additionally, the volume of shipments increased by 44.7% compared to June, showing consistent demand growth from China.
Russia’s success in the Chinese market is part of a broader trend of record wheat exports in the 2023-24 marketing year, with total export volumes reaching 55.4 million tons globally, a 24% increase from the previous year.
China’s strong demand for wheat has made it a key market for Russian agricultural products, with trade turnover between the two countries in agricultural goods increasing 33.9% to US$11.1 billion by April 2024.
However, Russia is also facing new export duties set to take effect on September 25, 2024. The duty on wheat and meslin exports will rise to 1,076.7 rubles (US$11.63) per ton, up from the current 956.9 rubles (US$10.33) per ton.
These duties aim to stabilize domestic markets but could impact the competitiveness of Russian wheat in international markets.
Despite potential challenges, Russia’s growing wheat exports reflect its ability to meet increasing demand, particularly from major buyers like China, leveraging competitive pricing and high stock levels throughout 2024.
This shift is likely to continue shaping global wheat trade dynamics as Russia cements its position as a dominant player in the market.
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