From “Emerging Markets” to Production Powerhouses

From “Emerging Markets” to Production Powerhouses

Grain spills out of an elevator. Grain spills out of an elevator.

April 12, 2016

NASHVILLE, Tenn (RFD-TV) Some “emerging markets” just aren’t what they used to be.

In the first decade of the 21st century, surging food demand in China and India sparked a frenzy of agricultural investment, and commodity prices soared as a result. Now, two other countries which not so long ago were viewed as big emerging agricultural markets – Brazil and Russia – are behind the collapse in prices as farmers there have significantly ramped up grain production in recent years, adding to global stockpiles.

Russia is expected to harvest 61 million metric tons of grain this season, while Brazil is on pace to produce two record soybean crops in a row. And Brazil’s neighbor Argentina is fast becoming a big player in the international ag scene as well: that country is expected to boost wheat production by more than 50 percent and corn production by 30 percent following cuts in export taxes.  

The International Grains Council sees global stockpiles staying near 30-year highs for the next year. 

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