Russia Now Demands Rubles For Grain As World's Largest Wheat Exporter

[The_Krakenite]

I wonder where they would have got an idea for something like that.... hmmmmm!

https://www.zerohedge.com/commoditi...nd-rubles-grain-worlds-largest-wheat-exporter

 

[Tokenz]

What like we don't know how to grow our own crops? Screw them, we got rice and corn.

 

[FreeGoldRush]

What like we don't know how to grow our own crops? Screw them, we got rice and corn.

The significance isn't our crops. We grow a lot of wheat. It's that wheat trades on a world market. If someone, somewhere doesn't buy it from Russia then the price of wheat goes much higher.

 

[TheDawn]

The significance isn't our crops. We grow a lot of wheat. It's that wheat trades on a world market. If someone, somewhere doesn't buy it from Russia then the price of wheat goes much higher.

If someone somewhere doesn't buy it from Russia then wouldn't the price of wheat go much lower because Russia will have to dump it massively on the market unless Russia cuts production? Of course if someone somewhere doesn't buy it from Russia, Russia will just turn around and sell them all to China considering China is the second largest importer of wheat which is quite puzzling considering the Chinese eats rice according to what I know. What do they need all these wheat for?

 

[FreeGoldRush]

If someone somewhere doesn't buy it from Russia then wouldn't the price of wheat go much lower because Russia will have to dump it massively on the market unless Russia cuts production? Of course if someone somewhere doesn't buy it from Russia, Russia will just turn around and sell them all to China considering China is the second largest importer of wheat which is quite puzzling considering the Chinese eats rice according to what I know. What do they need all these wheat for?

The answer to your first question is "no". I'm sure you are just trolling but I felt obligated to answer anyway.

The point is that if less wheat leaves Russia than is typical it will put upward pressure on the price of wheat as the supply available to the world is reduced. This statement is true regardless of whether they exchange it for dollars, rubles or seashells. Russia can't "dump" wheat as they only produce enough for themselves and their typical export levels. In future years, in theory, they could over produce wheat for the purpose of "dumping" it on the world to lower the price, but this would come at a very high cost to Russia and such a move would appear to only benefit most of the world. So you should not plan on that happening.

 

[TheDawn]

The answer to your first question is "no". I'm sure you are just trolling but I felt obligated to answer anyway.

The point is that if less wheat leaves Russia than is typical it will put upward pressure on the price of wheat as the supply available to the world is reduced.

Ok so what I said previous is true:

unless Russia cuts production?

You basically confirmed what I said in four words with a paragraph.

 

[easymon1]

Party on Wayne

 

[sridhga]

If someone somewhere doesn't buy it from Russia then wouldn't the price of wheat go much lower because Russia will have to dump it massively on the market unless Russia cuts production? Of course if someone somewhere doesn't buy it from Russia, Russia will just turn around and sell them all to China considering China is the second largest importer of wheat which is quite puzzling considering the Chinese eats rice according to what I know. What do they need all these wheat for?

Governments buy surplus food from the market and store them in their granaries for facing poor crop years. Russia could store that wheat.