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Ukraine is a major grain producer and exporter.
While the United States remains the world's largest exporter of corn, it continues to lose share of the wheat and soybean export market, according to a recent report from the U.S. Department of Agriculture's Economic Research Service (ERS). “Over the past decade, the United States has lost its position in the global wheat market while the European Union, Russia and Ukraine have gained market share,” the report said. “Similarly, Brazil and Argentina continue to pose a challenge to U.S. soybean exports.”
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The ERS noted that while the United States' involvement in trade agreements, particularly with emerging markets, contributes to its export competitiveness, it did not establish any new free trade agreements (FTAs) from 2012 to 2020, potentially limiting export opportunities in some emerging markets. Meanwhile, export competitors signed several FTAs during the same period.
Soybeans continue to be the most valuable commodity exported by the United States, valued at US$25.5 billion in 2020 and US$27.4 billion in 2021. Although the US soybean trade has grown since 2000, it faces competition from Brazil and Argentina. China remains the largest market for US soybeans, accounting for more than US$50 billion in exports from 2016-20. The ERS noted that “a potential threat to U.S. soybean exports is heavy dependence on China for purchasing.”
Although the United States remains one of the six largest global exporters of wheat, its market share has tended to decline since 2000. In 2021, American wheat exports were valued at US$7.7 billion. The top destinations for U.S. wheat exports have changed since 2000, with exports to Egypt declining and shipments to Mexico and the Philippines increasing. The report said drought and farmers' preference for higher-value crops such as corn and soybeans could reduce U.S. wheat production and exports in the coming years.
Source: Leonardo Gottems | agrolink
