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Russia’s Wheat Protectionism May Boost U.S., Canada Sales

  • Restrictions in top shipper Russia could push buyers elsewhere
  • U.S. sales may gain as EU supplies run low, AgResource says
Russia, the top wheat shipper, is imposing stricter-than-expected export measures after President Vladimir Putin demanded action to cool domestic food inflation.

Russia, the top wheat shipper, is imposing stricter-than-expected export measures after President Vladimir Putin demanded action to cool domestic food inflation.

Photographer: David Gray/Bloomberg
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Russia’s tougher wheat-export restrictions could spell good news for its North American rivals.

There are already signs that importers are starting to balk at higher Russian prices before an export tax is introduced in mid-February, and then raised for four months starting in March. With low stockpiles in the European Union and near-term cargoes in Australia booked, that’ll likely increase demand for U.S. and Canadian grain, according to Chicago-based consultant AgResource.