Re: Egypt buys almost 300,000 tns of US wheat---help supply their need
Because of the quality and price points Egypt buys wheat WHERE it buys it is an indicator of competitive price and available supply. The US is never going to be the cheapest, therefore, when Egypt buys from us it's a signal other cheap sources are exhausted or aren't cheap anymore due to lack of quantity, making it more difficult to source in large purchases and meet GASCO requirements.
Re: Egypt buys almost 300,000 tns of US wheat---help supply their need
I think it's been a long time since most countries dealt in wheat on that basis. Even through the war Iraq didn't buy that much wheat from us, even though it was once a big customer, until the Aussies started giving kickbacks to the goverbnment. Egypt has milked the Black Sea until its about tapped out. Then it started switching to France, and Europe doesn't have an abundant supply this year. Now it's a mixture of France and US. I think this shows a progression that is a repeat of other years.
I think we can count on more business for all varieties. Soft wheat is the variety that trades the largest amount on a global basis (if I remember correctly). Egypt is one of the largest importers of global wheat, almost all soft as their breads are flat breads. Brazil may surpass them but tries to get most of it from neighboring Argentina. Since Argentina has several problems inluding production complicated by export taxes Brazil will be more on the global market for milling what. There is no abundance of milling wheat this year, though Canada had a good crop. I think the deteriorating condition of Plains wheat will further boost interest in supplies of hi pro milling wheat. By the way, even China is importing this variety this year and there is some question of what this means in terms of their milling wheat supplies.
