Egypt has reinstated its zero tolerance policy on ergot fungus in wheat shipments. U.S. Wheat Associate’s Steve Mercer says there have been problems with that market and the U.S. is now gearing its export efforts on Latin America and Asia. He says despite the fact Egypt is a large purchaser of wheat, there’s better opportunity for U.S. business elsewhere.
He says both Asian and Latin American customers are more interested in higher quality wheat that the U.S. has than is Egypt which focuses on cheap wheat and business they can get from Russia, Ukraine and Eastern Europe.
Mercer says U.S. Wheat Associates long term focus is to both Asia and Latin America.
Mercer says in order to be able to sell wheat to Egypt the United States would have to cut its price by at least a dollar bushel. He says that wouldn’t be fair to U.S. wheat growers.
