“Wheat” is not strange to us any more despite you are a trader in futures trading floor or a normal labor, but to know all knowledge about it will be a long run. Knowledge about wheat market is diverse. Though we cannot cover all the aspects, today we will deeply talk about Global Wheat Markets.
Like the rest of the agricultural commodities, wheat is grown in the special areas with the proper climate and soil requirements. Because of the specific characteristic, wheat production is mainly conducted in a few selected regions. There is a interesting fact that make the basic driving factor of the global wheat market. That is countries in these areas often produce more wheat than they consume, while areas lacking in the necessary growing conditions aren’t able to meet domestic demand.
We now have a quick scan of the amount of world wheat production. A result of the centralized wheat production is that global leaders account for a large percentage of the total world’s wheat production. The following is the list of the leading producers of wheat and their percentages of global market share (percent of global production): China (17%), India (11%), the U.S. (10%), and Russia (9%). In a combination, these countries account for nearly half (47%) of global wheat production. The majority of the world’s leading exporters can be pulled from this list of producers. Among of the big names, the U.S. is the overwhelming global leader in exports with nearly 22% of 2009 exports expected to come from U.S. supplies. Russia and Canada are listed as the second and third leader in global exports, and combined account for approximately 30% of the world’s exported wheat.
You may wonder why China and India are not listed in the list of global leaders in exports. The reason is because they are not only among the global leaders in wheat production, but they also consume more wheat individually than any other countries. Now, just check out the following report you will easily figure out why. The leading consumers and their percent of global consumption are: China (16%), India (12%), Russia (7%), and the U.S. (5%). As you can see, the world’s leaders in wheat production and consumption are identical, albeit in different order. This is due to the fact that before the global wheat trade, cultural food consumption was centered on a nation’s means of production.
Essentially, if you didn’t grow it, you didn’t eat it. The diets of the citizens in these nations were also developed by this. When the wheat trade developed, wheat began to seep into areas of the world that lacked the ability produce wheat. Because of this trend, the global leaders of wheat imports make up a much smaller percentage of the world’s imports. These strange names from above – Egypt, Brazil, and Algeria – are the three leading importers in their respective order. Together they account for 16% of global imports which compares to the top three exporters who account for 52% of global figures.
You have just learn some points about the trends of exporters and importers which are important to watch as a trader of wheat markets. These are the biggest players of the market participants. Whenever you are earning from trading wheat, these information is not just simple for you to gain knowledge for daily conversation, but for your future investment. Keep learning to be a big man in the wheat trading floor!