Global Grain and Oilseed Trade Grew by 150M Tons in Last Five Years – Rabobank
Total global grain and oilseed trade has grown by 150 million tons over the past five years – a growth of 50% over the previous five year period, according to the recently released “World Grain & Oilseeds Map” by Rabobank. Despite this increase, the significant decline in commodity prices has meant that the value of this trade has actually decreased by 15% over the same time period to a value of approximately US$200 billion.
The strong U.S. dollar has meant that U.S. exports have faced headwinds, but emerging countries with weaker currencies have seen exports surge, translating to South American exports growing faster than North American. Brazil has overtaken the U.S. to become the world’s top soybean exporter while its corn exports have tripled over the past five years. The country increased its grain exports by 41 million tons, or 73% over the same time period, driven by strong demand from Asia. The Black Sea region has also seen a surge in exports, as Ukraine, Russia and the eastern EU member states each increased their grain & oilseed (G&O) exports by approximately 50%.
Asia has dominated world imports, accounting for 43%, while the EU is second, accounting for 12%, however, sub-Saharan Africa has shown the fastest growth rate for imports.
Looking forward, the report states that demand from Asia, the Middle East, and Africa will support continued growth in global grain and oilseed trade, with the gap between Brazil’s and the U.S.’s grain and oilseed exports continuing to close.