08/25/08 Iran still buying U.S. wheat

Farm and Ranch August 25, 2008 In late July we reported the first U.S. wheat sales to Iran in over a quarter century. And those sales have been continuing. Norton: "The indications they have purchased about a million tons from us so far." That's USDA grain market analyst Jerry Norton who says Iran looks to be in the world market to buy maybe four to five million tons of wheat. Norton: "Which is extraordinary. I mean if you go back to 2002, which is the most recent year they made a major purchase, they only purchased two million tons from the world market." And no wheat at all before 2000. Now Iran is buying from countries like the U.S. and Argentina with which it has serious political problems, but Norton says there is good reason, a drought. Norton: "They had a major disaster in terms of their crop production. We have them down year-to-year on wheat production about a third." As for Iran's normal suppliers; Norton: "They are traditionally a buyer from places like the Black Sea area and Australia. But Australia has had two bad crops and they are right now in the early part of the growing season there so they won't have crop available until later in the year. The Black Sea area, particularly the Ukraine, was hit by some heavy rains during harvest that really affected quality and they have a very low quality crop this year. So it really leaves them coming to places like the U.S. places like Canada and Argentina where there is available wheat supplies." The purchases from the U.S have been hard red winter wheat where in the past, in the 1970's, Iran's preference was soft white. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.