HAMBURG: The European Union, traditionally a huge wheat exporter, may import more US wheat in coming months because of low US prices, traders and analysts said on Monday.
"US wheat prices have dropped so low that more sales to the EU are on the cards in the near future," one trader said.
"It may sound like selling sand to Abu Dhabi but if the price is attractive US wheat will be imported."
Traders said US soft red winter wheat for February shipment from the US Gulf is currently priced around $315 tonne fob, way under French wheat at around $342 a tonne fob Rouen and German wheat at $361 a tonne fob Hamburg.
"High feed wheat prices, especially in Germany, are likely to generate more interest in wheat from the US and possibly South America," one German trader said.
A poor EU maize harvest in summer 2012 coupled with the decline of grain exports from Ukraine and Russia following their poor crops means animal feed wheat costs more than bread wheat in parts of the EU.
Comments
Comments are closed.