US SRW wheat exports set to top HRW for first time after China haul
NAPERVILLE, Illinois, Dec 14 (Reuters) – China earlier this month loaded up on U.S. soft red winter (SRW) wheat after its own crop’s quality was compromised by heavy rains, helping drive U.S. SRW exports to a 10-year high this marketing year.
On the other hand, U.S. hard red winter (HRW) wheat exports in 2023-24 are set for all-time lows among 40 years of records, despite HRW wheat being more plentiful than SRW and typically more dominant on the U.S. export front.
The U.S. Department of Agriculture on Thursday showed net 2023-24 wheat export sales were 1.49 million metric tons in the week ended Dec. 7. That is the largest weekly sales volume for a current marketing year since September 2007.
Some 1.12 million of those tons were SRW sales to China, which had been expected based on sales announcements during that week. China now accounts for 46% of all U.S. SRW sales, which account for 29% of all wheat sales.
According to export market development organization U.S. Wheat Associates, U.S. SRW wheat is closest to the wheat grown in China. Lower-protein SRW wheat is typically used to make cookies and crackers while higher-protein HRW is good for bread.
In the latest five years, HRW accounted for an average of 36% of annual U.S. wheat exports while only 12% was SRW. But government forecasts peg SRW at 24% and HRW at 20% in 2023-24, the first role reversal in the 40-year data history.
Source Link :- https://www.reuters.com/markets/commodities/us-srw-wheat-exports-set-top-hrw-first-time-after-china-haul-2023-12-18/
