The Black Sea region has grown into a global grain powerhouse. UkrAgroConsult estimates that grain exports from Russia, Ukraine, and Kazakhstan likely reached 80 million tons in the 12 months ending in June on the back of larger crops and weakening currencies. While the International Grains Council states that exports increased 14% compared to the year before and are estimated to be about 10% higher than shipments from the U.S. for the season.
Ukraine accounted for the greatest increase with exports climbing 13% to 37.85 million tons while exports from Russia are estimated to have increased 9% to 33.5 million tons. Shipments from Kazakhstan are estimated to have risen by 22% to 7.4 million tons.
This market dominance is not expected to continue throughout the coming season, however, as dry weather is cutting into output in Ukraine.
Total grain exports from the region, that surpassed exports from the U.S. in 2015/16 by 4.8 million tons, will likely by 2.2 million tons less than the U.S. in 2016/17 according to London-based IGC.