Buoyed by Chinese Buying, U.S. Wheat Exports Strong

WASHINGTON, DC – As China continues to ramp up its purchases of U.S. ag products to meet their Phase One trade agreement with the United States, some growers are experiencing higher prices for their raw commodities. One case in point is the value of wheat exports to the world, which reached $6.3 billion last year, and is expected to grow more over the next few years. According to the Foreign Agriculture Service (FAS), U.S. exports experienced a 1 percent year over year gain and continued to show dominance in the Philippines, Mexico, and Japan. Those three markets account for more than one-third of all export sales and could expand further as Russia, a major competitor, is implementing an indefinite floating export tax on wheat that may limit the country’s production and exports. China is expected to have strong demand for imported wheat this year, and FAS says the United States will likely continue expanding exports there. South America could also be a big market as reports indicate Brazil’s 750,000-ton tariff rate quota (TRQ) was recently extended for another year, offering additional export opportunities for U.S. wheat in the Southern Hemisphere.
(SOURCE: All Ag News)