December 3, 2012
Good
news over the weekend for SWW did not translate this morning into
results we could understand. That is, it was announced that the
state buying bureaucracy for Egypt had purchased 6 million bushels of SWW from the
Pacific Northwest for delivery in January and February of 2013. So it was hard to understand why the
Chicago wheat futures market finished off 4
at this morning’s close.
The announcement of this purchase should
eventually (if not today) work to further strengthen our market out
here. This is
a first for 2012-13 U.S. crop going to
Egypt the world’s largest importer of wheat. As you remember we had a bit of a selloff at the end of last week, so it looks like
Egypt was quickly buying on a price dip.
Three of the exporters in the PNW were involved in the sales. Remember
how we finished very tight in supply at the end of last year’s
crop, which was a bumper one? Well, this year with so much wheat
already being sold, and less production and acres, this sale will only
tighten supplies.
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