The European Union will be the world’s largest wheat exporter this year, and by a wide margin, says the USDA report Grain: World Markets and Trade. “The EU has a record crop and is the world’s most competitive supplier,” said the report. “Despite Russia’s waning presence in the market, the United States is unlikely to fill the gap due to uncompetitive prices and a strengthening dollar.”
European wheat exports are forecast to be 31.5 million tonnes and the United States is expected to produce 25 million tonnes in the trade year that ends on June 30, said the report. Two years ago, the situation was reversed — U.S. wheat, flour and product exports were 27.7 million tonnes and EU exports were 22.7 million tonnes. Last year was a virtual tie, with the EU ahead by 428,000 tonnes.