Russia Wheat Production Down; U.S. Wheat Tracking the Situation

Russia is the dominant wheat supplier making their prices challenging to compete with. However, the ongoing Russian-Ukrainian war has shifted market dynamics. Steve Mercer, Vice President of Communications for U.S. Wheat Associates has more on the latest market news regarding Russian and Ukrainian wheat production.

“Looks like production especially from Russia is going to be down. Of course, they produced 90 million metric tons of wheat last year. And I am looking at a crop that's probably going to be somewhere in the 80 million area between 80 and 90. But just recently, they've had issue with dryness and cold weather. So it looks like the frost and freeze damage has had a big effect. USDA put Russia now at 88 million metric tons. That's down. But the local analysts, soVEcon and group called ICAR that push that down even lower. SovEcon, which is plugged in pretty well there as well as anybody can be. They've now reduced that production down to 81.5 million metric tons.”

U.S. Wheat Associates Vice President of Communications, Steve Mercer.