August 31, 2010
Oklahoma farmers see potential for more wheat exports
In Oklahoma and throughout the US, producers this year delivered a big crop, adding on to a large carry-over from last year, and this presents an opportunity for more exports.
There will be about a billion bushel carry-over for this marketing year, said Mike Schulte, state wheat commissioner.
Severe drought in Russia - the world's third-largest wheat exporter - and Eastern Europe created a huge deficit on the market after Russia decided to ban exports until at least December.
In addition, supplies have tightened even more amid reports of flooding in Pakistan and the likelihood that country will hold on to its supplies. Countries from the Middle East, Japan and China are looking for reliable sources.
"We've had interest from Saudi Arabia and Iraq and interest from Egypt, looking for hard red winter wheat (the type produced in Oklahoma and other Midwestern states)," Schulte said.
Futures prices on the Kansas City Chicago Board of Trade have ranged from about US$5.40 per bushel since the end of May to US$7.14 at Friday's (Aug 27) close. State grain prices also have steadily risen.
