Mexico leads US wheat purchases
Mexico led the purchases of wheat originating in the United States in 2021, with 1,294 million dollars, a growth of 66.4% year-on-year.
Wheat is used to produce flour, the key ingredient for breads, pastas, crackers, and many other food products, as well as various industrial products such as starches and adhesives.
After Mexico, other countries that led purchases of US wheat were: the Philippines ($871 million, +5.3%), China ($803 million, +40.8%), Japan ($702 million, +10.7%) and Nigeria ($504 million, +62 percent).
Also, wheat by-products are used in livestock feed.
Wheat is the leading food grain produced in the United States, and US wheat production is generally second only to that of China, the European Union, the former Soviet nations, known as FSU-12, including Ukraine and the India.
According to the Teucrium Commodity Trust, global wheat consumption can fluctuate from year to year due to a number of reasons that may include, but are not limited to, economic conditions, global health concerns, and international trade policy.
Furthermore, wheat is a widely used commodity around the world, so any contraction in consumption may only be temporary, as it has been historically.
Wheat purchases
US wheat exports for the 2021/22 season fell by 15 million bushels to 810 million, the lowest level since 2015/16 and the second lowest since 1971/72.
A major factor limiting US exports this year was drought in the Northern Plains and Pacific Northwest, which severely reduced supplies of US hard red spring (HRS), hard and white wheat.
With supplies tight, the USDA forecasts white wheat exports to be the smallest in more than a decade, while HRS shipments are projected at the lowest level in more than 30 years.
Major Asian markets, especially China, have substantially reduced US wheat purchases in the face of relatively high prices in the US.
Some of the demand has gone to Australia, which has a record harvest this year.
US Hard Red Winter (HRW) prices have been supported by shortages in other wheat classes.
HRW exports are the lowest since 2015/16, as exports of this class have generally not been competitive with other key exporters such as the European Union and Russia.
