08/20/07 Who doesn't like high wheat prices?

Farm and Ranch August 20, 2007 These near record to record high wheat prices are great for U.S. wheat growers. But not everyone likes them including overseas buyers and end users. That's something Washington Grain Alliance CEO Tom Mick got a feeling for at a South Asia Buyers Conference held recently in Indonesia. Mick: "There was over 200 buyers there so it was a good representation of the whole industry. And it was very depressing for the buyers because the reports on prices that are going to remain high, ocean freight rates are high so their input costs have risen dramatically but at the same time many of them have to get approval from their government to raise flour prices and of course the governments don't want to raise food prices to the populous. So they are caught in a a catch-22." Mick countries like Indonesia, Malaysia, Thailand the Philippines will try and buy the cheapest wheat they can, however; Mick: "But they are still going to have to import our soft white because it is a very versatile wheat and they will have to use a minimum of 30% soft white in a blend with the cheaper wheats." Meanwhile, Mick described the buyer's conference as one of the best he has ever attended. Mick: "It was a super meeting and we made some super inroads for some soft white wheat sales for the next year. The conference was sponsored by U.S. Wheat Associates, the export market development arm of the U.S. wheat industry. I'm Bob Hoff and that's the Northwest Farm and Ranch Report.