WASHINGTON (Sputnik) — Russia’s emergence as a global leader in wheat exports is expected to continue for at least the next decade, US Department of Agriculture (USDA) Economist Ed Allen told Sputnik on Monday.
“The baseline continues to project that the growth in wheat exports will be stronger in Europe and Russia than in the United States, and part of that is the continued strength of the US dollar,” Allen said, referring to the latest ten-year projection by the USDA.
According to USDA statistics, projected Russian wheat exports will lead the world this year with 23.5 million metric tons. By comparison, the United States is expected to export 21.8 million tons, a 44-year low.
Analysts cite the strength of the US dollar and the weakness of the Russian ruble as a primary reason for the trend, since a strong dollar makes US and Canadian products more expensive for global buyers and Russian exports cheaper.
Falling oil prices also contribute to the trend. Because Russia’s economy is heavily dependent on energy exports, the ruble’s value is strongly tied to energy prices, Allen explained.
Historically the United States and Canada have traded places as the top and No. 2 wheat exporters.