12/20/07 The United States; the reliable wheat supplier

Farm and Ranch December 20, 2007 High wheat prices due to production problems have generated efforts to protect domestic supplies in several wheat producing countries, including several major wheat exporters. U.S. Wheat Associates, the export market development arm of the U.S. wheat industry, says export controls and export taxes isolate those countries from the world supply and demand picture, which tends to exacerbate the price adjustments in the rest of the market and make recent price swings even more volatile. John Oades of U.S. Wheat Associates Portland, Oregon office says the organization tries to capitalize on the current world wheat situation and the restrictions by some exporters by emphasizing that the United States is as reliable supplier. Oades: "That is true because of the fact of our open market system, our free market system. There is no discussion of stopping wheat exports in the U.S. despite the fact we are going to draw stocks down to record low levels. And that gives you leverage in the market place that you can build on for the future. Now again, if the wheat boards come back in next year with a big crop and undercut us by $10 a ton that's very hard to compete. And that is why we want wheat boards to go away. Let's go free market to free market. Then it is toe to toe and we can compete head to head, toe to toe in an open market environment." The latest forecast from the U.S. Department of Agriculture has the U.S. accounting for nearly one-third of the world export trade in wheat. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.