The war in the Ukraine and the rise in global wheat prices, caused in part by the blockade of Ukrainian ports, is providing Russia with new revenue prospects in the market.
The United States Department of Agriculture disclosed this in its latest report. During the 2022/2023 season, Russia’s wheat exports will be up by six million tonnes compared to 2021/2022, thanks mainly to a bumper harvest and strong demand for affordable wheat. Russian wheat in fact turns out to be the cheapest, costing $399 per tonne. The most expensive, at over $500 per tonne, is U.S. wheat.
According to the USD, Russia has confirmed that it is the world’s third largest wheat exporter. It is likely to continue to hold this position during the 2022/2023 season as well.
In contrast, Ukrainian wheat exports are expected to fall by 9 million tonnes compared to the previous season’s 19 million tonnes. The less abundant than usual harvest, its ports being under seige, and difficulties in the distribution of food supplies have led to a supply crisis, with worrying consequences in terms of inflation.
Translation by Giles Foster
