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Agricultural News


U.S. Wheat: Still The World's Most Reliable Choice

Thu, 03 Mar 2022 12:50:16 CST

U.S. Wheat: Still The World’s Most Reliable Choice The world's wheat buyers have heard the claim that dependable U.S. farmers produce "the world's most reliable choice." U.S. Wheat Associates (USW) and the farmers we represent believe in that claim because so many customers rely on several classes of U.S. wheat to meet their specific end-use and quality needs and because importing U.S. wheat carries less risk.

The situation the world's wheat buyers see today is uncertain. The invasion of Ukraine has disrupted already stressed exportable supplies. Market volatility is the result.

Fortunately, overseas customers know they can depend on the integrity of the U.S. supply chain, the quality of U.S. wheat and our unmatched reliability as a supplier. Here is why U.S. wheat remains the world's most reliable choice.

The U.S. "Wheat Store" is Always Open
U.S. farmers overcome significant risk every year to meet domestic wheat demand and still provide half their crop for export markets. Farmers and commercial warehouses can store and efficiently transport wheat in top condition to meet overseas demand when needed and throughout the marketing year.

Prices are Transparent and Honored
U.S. wheat export prices are discovered openly through futures exchanges and basis costs and are always available to customers. Private exporters use risk management tools to honor sales contract prices often made months in advance of vessel loading.

Quality is Assured
USW publishes weekly reports during harvest that summarize initial wheat quality findings. USW works with several organizations and laboratories to analyze hundreds of harvest and export wheat samples for all six U.S. wheat classes and publishes all results in the annual Crop Quality Report. Our staff, farmers and industry experts then travel the world to present the results to our customers and end-users. Those customers know U.S. wheat will meet their specifications because the supply chain follows uniform grain segregation and inspection procedures.

The Federal Grain Inspection Service (FGIS) independently inspects wheat at vessel loading to certify that the quality loaded matches the quality stated in the customer's contract. Those inspections yield valuable data down to the sub-lot level of 1,000 to 2,000 metric tons that customers can use, with assistance from USW, to get the most value from their tenders.

Direct Government Export Intervention is Banned
The world's most reliable choice is protected by several U.S. federal laws that assure the sanctity of all export contracts. The only exception is a declared national emergency. Export tariffs are forbidden in the U.S. Constitution, fully adhering to World Trade Organization disciplines, and U.S. policy prevents using food as a weapon.

Buyers Receive Unmatched Trade Service and Technical Support
With funding from dependable U.S. wheat farm families and USDA's Foreign Agricultural Service, experienced USW staff and consultants add exceptional value to all U.S. wheat class imports.

Fostering Trade
USW invests substantial funding from farmers and federal programs to help overcome trade or technical barriers that would otherwise keep end-users from realizing the highest value and most revenue from using U.S. wheat.

The U.S. wheat industry is proud of its position as the world's most reliable choice. All of us who participate in the industry believe that it contributes to world food security and economic stability, and work to maintain a transparent and open market to sustain that valued reputation.


   

 

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