Grainnet

The North Dakota Wheat Commission (NDWC) reports that exports of U.S. hard red spring wheat finished the 2006 marketing year at 249 million bushels, according to recently released statistics from the U.S. Department of Agriculture.

While exports were down 9% from last year’s strong levels—last year finished as the third best export year in a decade—they were still equal to the 10-year average.

The marketing year runs from June 1 to May 31.   "Increased competition from Canada was evident in some markets, but the strong quality of the 2006 crop helped drive sales to our key customers in traditional markets," explains NDWC Marketing Director Jim Peterson.

“It was especially positive to see the record sales to Japan, during a year with larger and generally higher-grading Canadian supplies.”

Peterson says the high protein content and inherent functional qualities of U.S hard red spring wheat “are features customers valued even despite comparatively higher prices during the past year.”   Exports of durum were down slightly in 2007, decreasing to 29 million bushels in sales, down from last year’s 36 million bushels.

“Export demand was hampered slightly by the high costs of ocean freight and larger domestic crops in Europe and North Africa, most notably in Algeria," Peterson explains.

“Tempering the decline was the resurgence of durum markets, like Morroco which doubled its purchases from the previous year, 6.8 million as compared to 3.1 million.”   Japan holds strong as the leader of the top 10 export markets for U.S. hard red spring wheat for the 11th consecutive year, marking a new record purchase at 61.5 million bushels.

Italy returns as the largest export destination for U.S. durum, with almost 10 million bushels in purchases, after Algeria bumped it from its five-year run at the top in 2004.   Buyers in over 46 countries imported U.S. hard red spring wheat during the 2006-07 marketing year, while durum was exported to about 14 countries.    HARD RED SPRING WHEAT EXPORTS

Japan is the leading export destination for 2006-07, with purchases of 61.5 million bushels.

The Philippines is next in line, with purchases of 34.5 million bushels.

Rounding out the list are Taiwan - 22 million bushels, Venezuela - 14, Korea – 13, Italy - 9, Thailand - 8, Mexico – 8, Dominican Republic - 7, and El Salvador - 7.   Japan’s purchases of 61.5 million bushels beat its previous record of 58 million posted in 1994-95 and represents a 13% increase over 2005-06 exports.

Japan’s buying, which makes up 25% of all U.S. hard red spring wheat purchases, along with steady-to-stronger year-to-year sales to other traditional markets in Asia, helped push overall exports in the region to 151 million bushels, up 6% from 2005-06.

Central and Latin America combined for 66 million bushels, down about 16% compared to a year ago, primarily due to slower sales to Venezuela and Mexico and strong Canadian price competition in this region.   DURUM EXPORTS   Top buyers of U.S. durum were: Italy – 9.9 million bushels, Morocco – 6.8, Algeria – 4.5, Nigeria – 2.9, Venezuela – 1.5, Costa Rica – 0.80, Tunisia – 0.70, Dominican Republic – 0.50, Guatemala – 0.40, and Mexico – 0.20.   Italy recaptured the top position for U.S. durum exports at nearly 10 million bushels, which was equal to its five-year average but down about 5% from the 2005 marketing year.

The benefits of the U.S.-Morocco Free Trade Agreement were seen as Morocco advanced to the second spot, with sales of 6.8 million bushels, more than double the 2005 pace.   Algeria and Venezuela, long-time significant customers of U.S. durum remained in the top five but were each down about 50% from more typical levels.

Higher comparative values for U.S. durum versus Canadian were a factor in both markets, as was the ability of France to deliver strong quality durum at a good price into Algeria due to lower ocean freight.

Strong gains were seen in Guatemala, Mexico, and Nigeria, however, as purchases increased 45% over their combined five-year average.   “Higher comparative prices for U.S. durum versus Canadian and French, along with a sharp increase in Lake freight costs from Duluth, MN, the primary export point for durum, challenged our market share in 2006,” says Peterson.

“The situation looks to be more price favorable to the United States in the coming year, with the potential size of the U.S. crop rebounding, world supplies tightening, and the fact that 2006 was a strong quality year.”

See Related Websites/Articles:

• North Dakota Wheat Commission

more GRAIN NEWS...