In 2015/16 MY, competition between Ukraine and Russia, and the EU on the world wheat market to increase

In 2015/16 MY, competition between Ukraine and Russia, and the EU on the world wheat market to increase

In 2015/16 MY, competition between Ukraine and Russia, and the EU on the world wheat market to increase

The FINANCIAL -- In the new season, the competition rates from the Ukrainian and Russian wheat will increase on the world grain market, which will adversely affect the exports of wheat from the EU countries, according to APK Inform.

Thus, Strategie Grains analysts lowered their forecast of soft wheat exports from the EU in 2015/16 MY by 1.1 mln tonnes - to 27.5 mln tonnes. Expectation of high competition in the market segment from Ukraine and Russia will become one of the key reasons for the reporting downward adjustment.

The experts noted that only Romania and Bulgaria from all European countries, would be able to confront their Black Sea competitors, however the export potential of the countries is rather low. In addition, Strategie Grains analysts believe that the export duties on Russian wheat will not have any negative impact on the shipment volumes of the grain from the country.

As a reminder, according to APK-Inform analysts, in the season-2015/16 Russia will increase wheat exports to 24 mln tonnes, against 21.3 mln tonnes in the previous year. The grain shipments from Ukraine will somewhat reduce to 11 mln tonnes, against 11.2 mln tonnes, expected in 2014/15 MY, but the index still remains significantly higher compared with the annual average one for 5 recent years (7.4 mln tonnes).