Wednesday, August 17, 2022

USW Takes Russia News with Grain of Salt

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Russia announced late last week that they’ll be lifting their grain export ban as of July 1. The country reportedly has more reserves on hand than thought and this year’s crop is looking better than a year ago when the country faced a severe drought.

Steve Mercer with U.S. Wheat Associates says they’re taking the news with a grain of salt.

He says it’s highly political with an election next year and concerns about food inflation

Wheat production in Russia and the Ukraine was down nearly 20-million metric tons last year.

Mercer says their return to the market could impact U.S. wheat exports.

However, Mercer says U.S. Wheat is still optimistic the U.S. will retain some of the business it gained over the last year due to its reputation as a consistent source.

Mercer says at least the timing of the announcement is more favorable this year and will allow the market to better absorb the news. Russia imposed their wheat export ban last year in early August due to severe drought.

Source:  Michelle Rook & NAFB News Service

Posted by Haylie Shipp

 

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