12/21/05 A wheat deal with Cuba

Farm and Ranch December 21, 2005 U.S. Wheat Associates and Cuba's official food import agency recently announced a commitment by Cuba to purchase 500-thousand tons, or about 18 million bushels, of U.S. wheat in 2006. Leonard Shock of Montana who is the incoming chairman of U.S. Wheat Associates was in Cuba when the agreement was announced. He explains how it came about. Schock: "Well we were down there just doing some of our trade servicing, meeting with some of the millers and meeting with some of their government buyers of wheat from America. And in some our discussions their main buyer said how about we sign an agreement where I'll buy 500-thousand metric tons from you next calendar year. And we said, hey we will do that. Sounds good to us." Shock says wheat sales to Cuba primarily benefit hard red wheat producing states. Shock: "Majority of their wheat is hard red winter wheat so it will be the Texas, Oklahoma, Kansas, Nebraska, South Dakota, and it may even reach up into Montana as far as some of our wheat going there. They also buy some small amounts of spring wheat to blend with the winter wheats and they are our 7th largest purchaser of durum wheat." The purchases Cuba agreed to make in 2006 are subject to competitive pricing, delivery and other terms. The letter of intent signed between U.S. Wheat and Cuba says the parties agree to work together to help expand Cuba-U.S. bilateral commerce and lift the current U.S. restrictions that affect trade and travel with Cuba. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.