from U.S. Wheat Associates, Wheat Letter

With just 12 weeks left in the U.S. wheat marketing year, export sales are running strong. Not only are exports easily beating last year, but sales to date already exceed TOTAL annual sales for every year in the last five years. So far this marketing year, as of February 26, over 26 million tons of U.S. wheat has been sold, 39% more than the same time last year.

U.S. wheat sales are breaking records around the globe, in the major wheat buying countries and in markets that are smaller -- but that are just as important.

Already this year, sales to Nigeria are the highest ever at 1.965 million metric tons (MMT), surpassing the previous high of 1.89 MMT in 2001/02. Elsewhere in Subsahara Africa, sales to South Africa, coming to 414 thousand metric tons (TMT) so far this year, are the most U.S. wheat they've purchased in ten years. And commercial sales to Mozambique, a big food aid recipient, are beginning to strengthen -- the 101 TMT of sales is a new record, twice as much as their previous high.

Of course, we'd be remiss if we didn't mention our friends in Egypt, who have purchased 3.63 MMT of American wheat. After their exports ranking slipped to #6 last year, they are back in first place for U.S. wheat exports, a rank they held for the five previous years. Also in North Africa, we see increased sales over last year to Algeria, Morocco, and Tunisia. The export picture is looking brighter elsewhere in the Middle East, as well, with increased exports over last year to Israel, Jordan, Lebanon, Syria and Yemen.

With sales of 2.48 MMT as of February 26, Mexico is quickly approaching a new buying record, a mere 7 TMT behind last year's total. Great things are happening elsewhere in Latin America, too. Peru's purchases, at 730 TMT, are the highest in at least the last ten years, as are sales to Venezuela (already at 732 TMT). Chilean imports of U.S. wheat are approaching their 10 year high (305 TMT in 1995/96) while giving the U.S. a healthy 67% market share. Colombia -- which was our 8th largest customer last year -- is on track, once again, to rank as one of our largest customers, with 704 TMT of U.S. wheat purchases so far this year.

Twelve countries in the Caribbean have imported U.S. wheat so far in 2003/04, purchasing over a million metric tons of U.S. wheat with three months still remaining in the marketing year. Cuba is leading the way with wheat imports through February 26 totalling a record 449,200 metric tons of HRW, HRS, and SRW wheat.

Sales to Europe are more than twice last year's sales. Italy and Spain continue to lead with purchases of 918 TMT and 499 TMT, respectively, in Western Europe, where sales now total nearly 1.8 MMT. But in Central Europe, Romania is the newest star, purchasing over half a million tons of U.S. wheat so far this year -- more than ever before.

The biggest news recently has been the tremendous purchases by China. Total commitments to date for this marketing year are 1,375,300 metric tons, with another 1,475,000 already on the books for the marketing year that begins June 1, bringing total China sales to 2.85 MMT. Marketing year 2003/04 sales to date are the highest since 1995/96, when China was America's third largest wheat customer.

The U.S. wheat industry greatly appreciates the steady loyalty of customers like Japan, Korea and Taiwan. Japan, which was our largest customer last year and is regularly either first or second, is tracking last year's pace, purchasing 2.81 MMT so far this year. Korea continues, year in and year out, to rank either 5 or 6 in U.S. wheat purchases and this year is just as good, with 1.2 MMT in sales so far. Sales to Taiwan are about 19% higher than last year at the same time, 882 TMT compared to 739 TMT at the same time last year, as our special friends there continue to give the U.S. the lion's share of the market.

Thailand is leading U.S. wheat sales in south Asia. As of February 26, their purchases are 373.6 thousand metric tons, a 30% increase over the 288 TMT of sales at this same time last year. The 30,000 ton increase in spring wheat and 38,000 tons of soft white wheat are due to the higher overall consumption of bakery products, the result of increased consumer spending, a strong economy, better exchange rate and reduction in the wheat duty.