US Flour Miller Imports Cheap Wheat Versus Buying Domestic

What does the US wheat flour Miller importing wheat outside of the US mean for the US wheat marketplace? Vince Peterson US Wheat Associates President explains this obscure situation.

“We do have some European Eastern European we'd most likely Polish origin wheat that is going to be moving into flour mill and Tampa, Florida, which is the only flour mill we have. The United States is actually built on a water access facilities in new art and flour mill that was built about the last one or two years down there.”

Blaming this situation on Russian President Vladimir Putin, Peterson explains that commodities from Ukraine have flooded the domestic market for Eastern European countries pushing prices down.

“the Russian invasion and a displacement of all those Ukrainian agricultural goods has made a huge problem in Eastern Europe. So when they blocked essentially the Black Sea access by ship and it's not blocked entirely there's a corridor there's been protected but a huge flood of grain wheat, corn oil seeds, and some other things went across into Eastern Europe."

Bottom line he says that the Tampa Florida Miller is making a decision based on economics

"At $100 ton difference you can put it on a boat in Poland bring it all the way across the Atlantic and take it into Tampa, Florida and be less than the price of the US hard winter wheat railed across the United States to get there.”

Vince Peterson, US Wheat Associates President.