Agricultural News
Astute Buyers Take Advantage of the Marketing Year's Lowest U.S. Wheat Prices
Thu, 10 Jan 2013 15:56:56 CST
U.S. wheat customers are moving aggressively to snap up high-quality U.S. wheat at significantly lower prices than just a few weeks ago according to a report by U.S. Wheat Associates.
As of Nov. 29, 2012, U.S. wheat commercial export sales for 2012/13 were 10 percent lower than 2011/12 sales to date with every wheat class running behind last year's pace. However, competitive U.S. wheat prices prompted the strongest sales numbers so far this marketing year in December. After adding nearly 2.6 million metric tons (MMT) in exports, total 2012/13 U.S. commercial sales of 19.1 MMT are now just 3 percent below last year to date. In addition, soft red winter (SRW) is now 17 percent ahead of last year's sales pace and durum sales are 3 percent higher.
The world wheat market pays close attention to buying decisions by Egypt and, in December, its government buying agency turned to the United States for the bulk of its imports. In one month, Egypt purchased 707,000 MT of U.S. SRW, hard red winter (HRW) and white wheat. The country had purchased a total of 150,400 MT from the U.S. in the first six months of the marketing year.
Several other countries increased imports from the United States in December. Excellent relative value spurred Turkey to buy 142,500 MT of SRW, HRW and durum. It was the country's first U.S. wheat purchase in more than 18 months. Germany nearly tripled its 2012/13 purchases in December and doubled last year's year-to-date sales, going from 10,900 MT to 30,900 MT. Thailand entered December with year-to-date sales running 2 percent over 2011/12. But thanks to 73,500 MT purchased last month, 2012/13 U.S. wheat sales to Thailand are now 20 percent greater than at this point last year.
Traders are reporting that China is also looking to the U.S. to help bolster wheat supplies. Demand for western style wheat foods is growing there and Chinese imports of high protein wheat have increased over the past several months. Indications are the move down in U.S. wheat prices is apparently attracting the attention of China's buyers once again.
It remains to be seen whether or not increased demand for U.S. wheat and on-going concern about next year's winter wheat crops (see "Wheat Industry News," below) encourage a reverse in the month-long futures price slide. For now, more U.S. wheat customers are taking the opportunity to acquire high-quality U.S. wheat at the best values of 2012/13.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
