05/25/05 Exploring a wheat deal with Egypt

Farm and Ranch May 25, 2005 It may not be possible but the Washington Wheat Commission has committed up to 30-thousand dollars to find out. And that is can a long term agreement be reached with Egypt to purchase U.S. wheat, specifically Pacific Northwest white wheat? Washington Wheat Commission CEO Tom Mick says the Egyptian government minister who handles wheat imports has expressed interest. Mick: "He has indicated that he would like to work on some type of deal where he can buy a large volume of wheat to cover maybe a year's need and stabilize his prices that way over that time period." Mick says the Egyptian minister did not specify any particular U.S. wheat class but soft white is a preferred wheat there and the industry here would like to seize this opportunity. Mick: "It may not be obtainable but it is something that deserves looking into. And Egypt is such a swing market. Very, very important to us. If we could take out the ups and downs of that market and stabilize the amount of volume that goes in, everyone would benefit." One person highly skeptical about such a deal is Tommie Williams of CLD, an exporter who has been a member of the Washington Wheat Commission. He says there is just too much risk for an exporter to assume by selling wheat a year out at a guaranteed price. He says if Egypt wants to buy a million tons he would sell them that now but at scale up pricing because the market would "go ape." Then Egypt would find it could buy wheat cheaper elsewhere. But Mick says some other exporters are interested. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.