World Grain - October 2008 - 10
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AWB, others accredited to export bulk wheat
MELBOURNE, AUSTRALIA - AWB
Limited Managing Director Gordon Davis
on Sept. 11 said that he welcomed the decision by Wheat Exports Australia (WEA)
to accredit AWB Limited subsidiaries AWB
Harvest Finance Limited and AWB Australia Limited to export bulk Australian
wheat under the Wheat Export Marketing
Act 2008. This move brought the total number of accreditations to export wheat under
Australia's new system to 13.
AWB lost its monopoly to export wheat on
June 30. This was due to the oil-for-food scandal, in which AWB executives were found to
have bribed former Iraqi leader Saddam Hussein to purchase grain from Australia.
The new governing body for Australia
wheat export, Wheat Exports Australia
(WEA), announced on Aug. 26 the first
five bulk wheat exporters that have been
accredited through the Bulk Wheat Export
Accreditation Scheme under the Wheat Export Marketing Act 2008, which came into
effect on July 1:
* Cargill Australia Limited;
* Elders Toepfer Grain Pty Ltd.;
* Goodman Fielder Consumer Foods
Pty Ltd.;
* Grain Pool Pty Ltd.; and
* OzEpulse Pty Ltd.
On Sept. 5, the WEA announced the accreditation of six other bulk wheat exporters:
* ABB Grain Ltd.;
Grain silos at Port Pirie, South Australia. Photo courtesy of Ashley Whitworth.
* Concordia Agritrading (Australia)
Pty Ltd.;
* Glencore Grain Pty Ltd.;
* GrainCorp Ltd.;
* Louis Dreyfus Australia Pty Ltd.; and
* Marubeni Australia Limited.
Many in the Australian and international
grain industry were surprised that AWB was
not in the first group announced. It was not
until Sept. 11 that WEA finally announced
that the two AWB organizations would be accredited.
Iran imports U.S. wheat for the first time in 27 years
ARLINGTON, VIRGINIA, U.S. - Iran purchased U.S. wheat for the
first time in 27 years and the amounts are quite surprising, said U.S.
Wheat Associates (USW).
"Iran has been self-sufficient in wheat production for several years,"
said Vince Peterson, USW vice-president of overseas operations. "But
clearly the drought in that region has had a major impact. Iran appears
to have made up the majority of that shortfall recently through import
purchases, and that has been a very good marketing decision.
"They are buying at the perfect time," Peterson explained. "Supplies
are at their highest levels at this time of year and wheat prices are down
more than 30% compared to recent highs. They needed a lot of wheat
and I don't think they could have managed such a large purchase so
efficiently without the U.S. supply system," he added.
As USW Senior Market Analyst Joe Sowers reported in July, insufficient rainfall in Iraq, Syria and Iran is expected to increase import
10
demand in the region by more than 6 million tonnes. "Although Black
Sea region wheat exporters have a freight advantage in the Middle
Eastern market, high quality and reliable availability is keeping demand for U.S. supplies strong. The current sales pace in the region is
well ahead of last year," he said.
In fact, as USW Vice-President John Oades noted, above-average
quality of the 2008-09 crop is helping fuel strong demand for hard red
winter wheat (HRW). The crop is available to the international marketplace earlier than similar class crops from other exporters. HRW sales
to Europe, Eastern Africa, Sub-Saharan Africa and the Middle East all
are well above last year's pace.
After just 11 weeks of the 2008-09 marketing year, total commercial
purchases of U.S. wheat for export is 50% (13.6 million tonnes) of the
United States Department of Agriculture's estimate of exports for the
entire year.
October 2008 / World Grain / www.World-Grain.com
http://www.World-Grain.com
http://www.World-Grain.com
World Grain - October 2008
Table of Contents for the Digital Edition of World Grain - October 2008
Contents
World Grain - October 2008 - 1
World Grain - October 2008 - 2
World Grain - October 2008 - 3
World Grain - October 2008 - Contents
World Grain - October 2008 - 5
World Grain - October 2008 - 6
World Grain - October 2008 - 7
World Grain - October 2008 - 8
World Grain - October 2008 - 9
World Grain - October 2008 - 10
World Grain - October 2008 - 11
World Grain - October 2008 - 12
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