WHEAT: WORLD MARKETS AND TRADE
Turkey Displaces EU as the World’s Largest Flour Exporter: Turkish flour exports have soared in the past year. Iraq emerged as a key flour market following delays in purchases and tenders of wheat. With logistical advantages due to its proximity, Turkey is the natural supplier. Furthermore, a very good quality Turkish crop improved flour quality, making it more attractive on the world market. Meanwhile, EU flour exports have continued their steady decline despite subsidies this year. Many traditional EU markets have continued to increase domestic milling, and competition from the Middle East has strengthened, particularly in Libya. (See PDF version for chart).
Domestic: Prices rose for all wheat classes in February, driven largely by deteriorating conditions in the Hard Red Winter crop. Dryness has continued, especially in the southern portions of the HRW belt, and this has heightened fears of a sharply reduced new crop.
For the month, HRW prices climbed $10 per ton, with Soft White up $8 per ton, HRS up $4 per ton, and SRW up $3 per ton. (See PDF version for chart).
TRADE CHANGES IN 2005/2006
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Last modified: Monday, March 13, 2006