Wheat growers watching Egypt riots closely

Posted: Saturday, February 5, 2011
The civil unrest washing across Egypt could have a big impact on wheat growers in Oregon if that country’s government doesn’t remain friendly toward the United States.

Wheat growers have experience with world politics playing a role in wheat prices. Iran purchased about a million metric tons of wheat until 1979, when a change in leadership during the Iranian Revolution brought that number to zero.

“Egypt is usually the cheapest buyer, so it’s where they can buy the cheapest wheat,” said Jon Sperl of Pendleton Grain Growers. “Egypt has been a huge, huge buyer of wheat off the West Coast. This year ... they’ve been buying the cheaper black seed wheat from Russia.”

This year wheat from Oregon is making its way primarily to the Pacific Rim — and Yemen, another country in political unrest.

“Obviously we’re concerned. Year in, year out they’re typically the largest importer of wheat in the world,” Sperl said. “As long as they keep buying wheat and take wheat off the balance in the world, it’s not an issue.”

Egypt imports around 10 million tons of wheat a year. Darren Padget, the immediate past president of the Oregon Wheat Growers League, agreed with Sperl’s assessment.

“We don’t like to see turmoil anywhere in the world, because our product is 85 to 90 percent export,” Padget said. “We’re very sensitive to any of our markets having an issue. Right now prices are high. It’s not quite the issue if prices were in the $3 or $4 range.”

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