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10 March 2025

Russia Surpasses U.S. Wheat Exports To China Amid Growing Agricultural Influence

Strong exports from Ulyanovsk Oblast highlight Russia's rising prominence in global grain markets.

Russia's agricultural export scene has taken a significant turn at the beginning of 2025, with Ulyanovsk Oblast reporting over 106 thousand tons of grain and processed products exported. This impressive figure is not only indicative of the region's agricultural capabilities but also reflects Russia's growing influence on the global grain market.

Among these exports, notable volumes include 18 thousand tons of sunflower, 66.4 thousand tons of wheat, 6.8 thousand tons of barley, 5.7 thousand tons of peas, and 3.7 thousand tons of soybeans. The products have been sent to 24 regions of Russia, including key markets such as Moscow, Saint Petersburg, and regions including Krasnodar and Khabarovsk Krais, as well as Republics like Tatarstan and Chuvashia.

Remarkably, during the first eight months of the current agricultural year, from July 2024 to February 2025, Russia exported 275 thousand tons of wheat to China, marking a historical milestone as these shipments have now surpassed those of U.S. wheat to China for the first time. This shift signifies not just Russia's agricultural strength but also a pivotal moment within the global grain market structure.

According to the analytical center Русагротранс, China has substantially reduced its imports of grains due to record domestic harvests, procuring approximately 1 million tons of wheat during the current season from its main suppliers, including Russia and the United States. This season, as reported, China acquired 275 thousand tons of wheat from Russia, contrasting sharply with the merely 147 thousand tons it sourced from the United States.

To put this development in perspective, the previous years showcased the dominance of American wheat, where imports ranged from 1 to 2 million tons annually. Meanwhile, the global import volume was estimated at around 13 to 14 million tons. The dynamics have now shifted; Canada has supplied about 500 thousand tons, whereas the EU and Australia provided relatively smaller quantities.

Last agricultural season, China purchased 4.1 million tons of wheat from Australia, 3.2 million tons from Canada, 2.4 million tons from the EU, and 2.1 million tons from the United States. The dramatic changes can be attributed, at least partly, to the economic and political backdrop, particularly China's introduction of a 15% tariff on U.S. wheat imports on March 10, 2024, which served as retaliation against American tariffs. This tariff has inevitably incentivized China to pivot toward alternative suppliers, primarily benefitting Russia.

Before 2024, the amount of wheat supplied by Russia to China was significantly smaller, typically fluctuated between 50 and 90 thousand tons annually. Previous barley exports followed similar patterns, ranging between 50 to 130 thousand tons. The drastic increase signals not only enhanced agricultural capacity but also strategic trading maneuvers aimed at cementing Russia's standing as one of the key wheat suppliers to the Asia-Pacific region.

Given this recent uptick, there are discussions concerning the potential expansion of export rights to include winter wheat to China, previously limited to spring wheat. Experts within the grain market have underscored this development, indicating it could lead to substantial increases in export volumes, enhancing Russia's position as a primary grain supplier.

Overall, Russia stands on the brink of redefining its agricultural export strategy, especially concerning China, illustrating how geopolitical events shape agricultural trade. This newly burgeoning relationship appears to open up exciting opportunities for Russia's agricultural sector, potentially shifting the balance of power within the global grain trade.

These developments are watching closely, as they could represent more than just numbers—they could be signs of long-term changes within the global agricultural framework, demonstrating how countries adapt and evolve their strategies to remain competitive on the world stage.