VIEW In early 2011, U.S. growers struggled with the extremes of drought in southern winter wheat and too much moisture hampering northern spring wheat planting. Critical Crop The theme in wheat last year was mainly about reduced production and export restrictions in Russia and Ukraine, which helped boost U.S. exports about 45 percent to replace the shortfall. The United States already exports a larger percentage of its wheat than other crops, so the small grain’s global supply-demand balance has a significant effect and one region seems to tip the scales more than the others. “The Black Sea region is the main swing factor in supply and pricing of the world’s wheat,” says Alex Hanson, CHS Europe risk manager. “This year we are likely to have good supply and a more open export market structure. Grain exports from the region should increase by 20 million metric tons, reducing the need for U.S. wheat exports by about 15 percent versus last year.” — Lisa Graham-Peterson 16 July/August 2011 CHSINC.COM
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Lisa Graham-Peterson
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