February 23, 2010

 

EU, US exporters face competition from Black Sea wheat

 

 

Wheat exporters in the US and the EU are struggling to compete with Black Sea wheat, Germany-based grain trading house Toepfer said Monday (Feb 22).

 

"The result is a decline in exports which in turn will lead to an increase in stocks," said the firm.

 

Demand for feed wheat has also been disappointing as declining prices have encouraged buyers to hold off making any significant purchases in the hope that prices may come lower, said the report.

 

In addition, "these low prices lead to a reluctance to sell on the part of farmers particularly since the prices for the new crops are much higher," said Toepfer.