Grain and oilseeds markets continue to thrive despite reduced US exports, according to the latest update from Rabobank.
Global trade of grains and oilseeds (G&O) increased by 150 million tonnes in 2010 to 2015 - exceeding the growth in the previous five years by more than 50%, according to the report. However, falling prices meant the value of trade dropped by more than 15% over the same period, to about $200bn in 2014/15.
US exports have struggled due to the strong US dollar, says Rabobank, but exports from regions with weaker currencies are booming. Brazil in particular has achieved major growth - overtaking the US as the largest soyabean exporter in the world and tripling corn exports over the past five years. Since 2010, Brazil has increased G&O exports by more than 73% - or 41 million tonnes.
The Black Sea region has also ramped up G&O output - with Ukraine, Russia and the Eastern EU member states all increasing exports by around 50%, Rabobank says.
And the EU saw significant growth in grain exports after several years of good crops, overtaking the US as the world’s largest wheat exporter.
“While US exports have been struggling in recent years, due to the strong US dollar, exports of emerging regions with weak currencies continue to boom,” says Stefan Vogel, global strategist grain and oilseeds at Rabobank. “The EU has also, due to very good crops in recent years, grown its grain exports by about 50% in the last five years.”
Asia is by far the biggest importer of G&O - with China alone ramping up imports by 9% - around 60 million tonnes - in the past five years. There was also strong growth from the Middle East and North Africa, said Rabobank, while the EU increased G&O imports by about 15%.
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