Fundamentally Speaking

Argentina, Brazil, Russia and Ukraine Increase World Share

Joel Karlin
By  Joel Karlin , DTN Contributing Analyst

In prior posts we have noted that the U.S. share of world corn, soybean and wheat exports has declined over the past two decades as increasing competition from Argentina, Brazil, Russia and Ukraine has been particularly formidable.

The attached graphic shows the combined Argentine, Brazilian, Russian and Ukrainian corn and wheat harvested area and production as a percent of the world total since 2000 on the left hand axis and their share of world soybean harvested area and production on the right hand axis.

A look at the chart shows these four countries over the past two decades have increased their share of world harvested corn area from around 12% to what appears to be an all-time high of 16.5% last year with their share of corn production increasing even faster from 10% to 18%.

Their combined share of global wheat harvested area has risen from 16% to about 19.5% and their percent of world wheat output up from around 10.7% to 17%.

As for soybeans, even though Argentina and Brazil dominate in this regard both Russia and Ukraine have expanded their plantings and output of this oilseed since 2000.

The combined share of these four countries of world soybean harvested area has ballooned from around 33% to 48% with their share of output expanding even faster from 38.5% to 55%.

The table below shows the 20 year capitalized annual growth rate for the combined Argentine, Brazilian, Russian and Ukrainian (ABRU) for corn area, corn production, soybean area, soybean production, wheat area and wheat production and the same thing for the world totals.

Note in every category the annual growth in these four countries exceeds that of the world total, often by large margins.

Argentina, Brazil, Russia, Ukraine World
Corn harvested area 2.9% 1.7%
Corn production 6.0% 3.2%
Soybean harvested area 4.4% 2.5%
Soybean production 5.2% 3.3%
Wheat harvested area 1.1% 0.0%
Wheat production 3.6% 1.4%

(KLM)

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