Monday 16 November 2009

U.S. bets Canada's wheat pricing war unsustainable on Saudi

Canadian wheat origins have so far managed to grab a pole position in supplying the Saudi market through aggressive pricing tactics, but such a policy can not be sustained in the long run, U.S. Wheat Associates said.

Saudi Arabia became the biggest addition in years to the global wheat buyside after it decided to gradually phase out wheat cultivation as of last year and up to 2016 to save water resources.

This means a lot for U.S. wheat farmers who face sagging exports amid ample global supplies of less-expensive wheat from other nations and comparatively higher U.S. shipping costs.

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