Russian wheat continues its expansion in global markets

Russia's Intentions to master the fourth-largest wheat market – Algeria is very concerned about the European traders, especially in France, which is the main supplier of wheat to the country.

until now, Algeria has not bought Russian wheat due to quality problems. However, last week the Algerian officials visited the Russian bakeries and Department of quality control of grain in the framework of measures for expansion of trade relations. Soon Algeria will be sent a trial shipment of Russian wheat.

Strategie Grains Experts believe that the opening of Algeria's market for Russian grain will be a shock to wheat markets.

currently, Algeria buys 41.6% of wheat exported by the EU. Last season wheat exports from the EU decreased by 16%, while Russia due to the low price of wheat increased its sales to record levels.

If the situation will continue to evolve in this way, Russia will become the world's largest supplier of wheat in North Africa. She already dominates the market one of the largest importers of wheat – Egypt. In the total volume purchased by Egyptian wheat in the current my 75% is the share of Russian grain, 19% European, which is represented exclusively in Romanian wheat.

After a bad harvest in 2016/17 MG France lost the markets of Morocco, Cameroon and Senegal, therefore, the Algerian market is very important to her. Experts believe that soon there will be a growing competition from Argentina.

However, the agreement between Russia and Algeria is limited impact on the wheat market in the current season, since Russia already has a sufficient number of customers.