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2010/2011 Trade Activities

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2010/11 Market Snapshot
Russian Export Ban Shocks World Wheat Market

Overseas demand for U.S. wheat started sluggishly in 2010/11. With abundant supplies of lower priced Black Sea wheat predicted, there were low expectations for U.S. wheat exports. Then, news about drought in Russia, Ukraine and Kazakhstan grew more ominous. Just as importers were absorbing the potential impact of reduced supply, Russia’s government shocked the markets by halting wheat and feed grain exports on August 15, 2010.

Yet, armed with information from USW, importers knew they could rely on U.S. wheat producers to meet their needs immediately and for the rest of the year. U.S. wheat exports jumped quickly and continued growing as weather problems hurt the Canadian, German and Australian crops.

Japan and Nigeria usually vie for top U.S. wheat importer status and both customers significantly increased purchases in 2010/11. In fact, because they know U.S. wheat is “the world’s most reliable choice,” all 10 of the largest U.S. wheat buyers, and each region USW serves except North Africa, increased U.S. wheat imports in 2010/11.

Here is how USW responded to several other opportunities to increase U.S. wheat export demand and influence trade policies around the world in 2010/11.

2010/2011 Trade Activities
Building on a More Favorable Political Environment for Trade
With the U.S. trade agenda gaining some momentum in 2010/11, USW continued its work to remove trade barriers that distort free and fair U.S. wheat export flows around the world. In partnership with the National Association of Wheat Growers, USW pushed U.S. officials for passage of pending free trade agreements with Colombia, Panama and Korea to create equal or preferential market access policies. Read more

Helping Millers Move Flour to Haiti
Four flour mills in the Dominican Republic are expanding to meet new demand in Haiti after the January 2010 earthquake destroyed its only flour mill. USW stepped up with trade and technical support to show how U.S. wheat could help the mills respond and grow well into the future. Read more

Building Soft White Demand through Food Science
USW Asian product baking experts developed the first-ever scientific investigation into how flour made with U.S. wheat performs in spring roll wrappers. The course was part of a USW program that works with research and educational partners to demonstrate the quality of U.S. wheat in new markets and products, including spring roll wrappers, instant noodles, steamed breads and more. Read more

The New Saudi Arabian Market
The Kingdom of Saudi Arabia is importing wheat again after ending its production program due to water supply concerns. Through its Cairo regional office, USW has maintained contact with Saudi grain officials. In early 2010, USW worked with state commission members to bring Saudi grain officials to the United States to learn about our wheat export, price discovery and risk management systems. Read more

Egypt Turns to U.S. Wheat Growers
The unexpected loss of Russian wheat hit hardest in Egypt, the world’s largest wheat importing nation. Over the years, USW has helped the Egyptian importing agency establish minimum quality standards based on #2 U.S. SRW. In June 2010, USW brought a team of Egyptian government officials to the United States to learn more about our quality assurance systems. Read more

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