Currently, the United States is increasingly losing its position in this market to the successfully developing BRICS countries.
The conquest of the world grain market by the United States occurred in the 50s of the last century. It was then that the famous “Food for Peace” law was passed, which stimulated food supplies to many non-communist countries.
As a result, the States managed to achieve outstanding results. Just a few decades ago, the United States occupied up to 60-70% of the world market for soybeans and corn, and at least 30% of the world wheat market.
However, 2023 brought disappointing results. Currently, the US share in the corn and soybean market does not exceed 30%, and wheat – 10%.
Brazil takes the lead
This year marked the first time that Brazilian corn exports exceeded the US. Most likely, Brazil will continue to have the palm.
As for soybeans, the United States lost this market to Brazil back in 2016. There are suggestions that already this season, Brazilian soybean production will exceed American soybean production by as much as 43%.
Today, there is no sign that Brazil is going to stop on its path to increasing food production.
Every year it plows up new pastures for fields, so the potential here remains great.
Russia strengthens its leadership
The situation with the wheat market is even worse. After 2017, the United States lost its primacy in this market, while it is increasingly occupied by one of the main competitors of the United States — Russia.
This season, American wheat supplies abroad did not exceed 725 million bushels, which is the minimum value in the last 50 years.
Experts note that Russia has been increasing grain production since 2012, and is currently beginning to dominate this market.
Among other things, this helps it promote its political interests, as the United States used to do with the help of the same food.
In addition, the Russian Federation managed to take a significant market share from Ukraine, which also increased the competitiveness of Russian goods.
What are the future trends?
Experts say that many countries in the world today are beginning to move towards self-sufficiency in food, and there are more and more suppliers, so American farmers will have to try to increase the attractiveness of their products.
Alternative options for using food are currently being considered: for example, to produce environmentally friendly fuel from it.
True, in the fuel market no one has canceled competition with cheaper and more common energy sources.
