U.S. Wheat Associates comments on end of Russian export ban
Farm and Ranch June 3, 2011 The recent announcement from Russia that it will end its ban on wheat exports starting July 1st is being taken with a grain of salt by the export market development arm of the U.S. wheat industry, U.S. Wheat Associates. Its Steve Mercer points out there is an election in Russia next year and food inflation is an issue. Mercer: “The Russian government is nothing if not unpredictable. We were surprised by the export ban last year. There have been some talk this year that this remains to be seen. I mean the decisions that are going to be made about grain supply inside Russia are very political and therefore pretty unpredictable.” But a Russian return to wheat exports would impact U. S. export sales. Mercer: “So even if they come up an export five, ten million metric tons in the coming year, yes it will have an impact and I think the markets are already reflecting that.” Mercer says U.S. Wheat Associates is still optimistic the U.S. will retain some of the business it gained over the past year due to our reputation as a reliable supplier of quality wheat. Mercer: “We talk a lot to our customers overseas about the value of reliability. They know there is a supply of U.S. wheat that is of excellent quality, always. The market is always open. In fact it is essentially illegal for us to ban exports except in the case of national emergencies.” Egypt is a major importer that is expected to return to buying Russian. I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net. ?
