By: Erica Olson
Posted: Jun 28 2024
U.S. wheat exports have faced an increasingly competitive situation in recent years due to a combination of factors including: drought impacted domestic production that has reduced supply levels, lower overall demand due to world economics and changing demographics, increased production in competitor countries, and high U.S. wheat prices relative to other sources.
For the 2023-24 marketing year, total U.S. wheat exports were 720 million, the lowest in decades. However, spring wheat exports reached 240 million, the highest in three years and durum exports reached 27 million, about 17% higher than a year ago. While not immune from the competitive world factors, both HRS and durum demand remained relatively strong due to fewer competitors offering similar high quality wheat.
U.S. HRS was the largest class of wheat exported last year. Much of the demand for HRS comes from North and South Asia and Central America. The top five market list has changed very little in recent years, with the exception of the order. The Philippines remains the largest buyer with 58 million bushels in purchases, up from 43 million the previous year. Mexico has moved into the second spot with 35 million bushels in imports, the highest level in recent history. Taiwan, Japan and Korea are long-term, consistent markets and round out the top five.
The U.S. durum export market remains more concentrated due to lower overall world demand for the smallest class of wheat. Sales for the 2023-24 marketing year were up by about 3 million bushels, but large, unexpected durum exports from Turkey tempered potential further export increases. Algeria was the top market for U.S. durum for the second year in a row, reaching just over 11 million bushels. Sales to Italy, at 6.5 million bushels, were lower than the long-term average due to competition from Turkey and the Black Sea region. Morocco, Mexico and Venezuela round out the top five markets.
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