August 1, 2006

 

US wheat sales to top three buyers up 45 percent

 

 

Quality deficiencies in other wheat producing countries helped the US to capitalise on smaller export markets and gain those which not been importing for years, a US industry source farmfutures.com said. 

 

Japan was the leading export destination for hard red spring wheat in the 2005-2006 marketing year, followed by the Philippines.

 

The rest of the countries are Venezuela, Taiwan, Italy, Spain, South Korea and Thailand, among others.

 

Record or near record sales were made to Japan, Venezuela and Mexico. Combined sales of 93 million bushels to these three markets were up 45 percent over the recent five-year average.

 

The Philippines, Spain, Thailand and the Dominican Republic showed a combined 34 percent increase over the five year average but were steady with previous year sales.

 

Exports to the Japanese market increased sharply thanks to US Wheat Associates marketing efforts said Jim Peterson, ND Wheat Marketing Commission marketing specialist.

 

Its efforts in Mexico and Venezuela to educate buyers on contract specifications, is also producing results, the industry source said. Sales to all of Latin America, at 70 million bushels, are the highest for the past 10 years.

 

As for US durum wheat, top buyers were: Italy at 11 million bushels, Algeria at 10 million bushels and Morocco at 4 million bushels.

 

Other countries include Venezuela, Tunisia, Nigeria, Spain and Costa Rica.

 

Quality deficiencies in other wheat-producing countries helped the US to capitalise on smaller export markets, some of whom have been absent for a few years, Peterson says.

 

Stronger sales to Morroco this year was helped by the new US/Moroccan Free Trade Agreement which gives US durum a tariff advantage over Canadian durum, Peterson added.