The Canadian Wheat Board says U.S. Wheat Associates president Alan Tracy doesn’t know what he’s talking about.
During a visit to CWB offices Jan. 19, Tracy told a luncheon audience the board regularly undercuts American selling prices to steal market share. He cited a number of specific examples to back up his argument.
The board said that is not true, and released its own numbers to refute his charges. All the following examples are in American dollars.
- Tracy said that in March 1999, a buyer in the United Arab Emirates bought Canada Prairie Spring wheat for $115 (U.S.) a tonne and Canada Western Amber Durum for $169, while U.S. quotes for the same specifications were $120.28 and $175.40 respectively.
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The board said it neither bid on nor sold any durum wheat to the UAR in March 1999. It refused to disclose the price it got for any sales of spring wheat, but said United States sales of similar quality wheat to Egypt at the same time were priced at $116.40 and $94.90 per tonne, well below the numbers cited by Tracy.
- Tracy said that in November 1999, the board sold wheat to Sri Lanka for $144.65 a tonne, well below U.S. tenders of $148.64. The board said the U.S. bid was in fact $146.29. It also said that in September 1998, the board lost potential sales to Sri Lanka. when it was undercut by the U.S. by about $3 a tonne for soft wheat and $13 a tonne for hard wheat.
- Tracy said the board has a standing offer in The Philippines to discount any U.S. price by $7 a tonne for the same quality wheat. The board says that’s not true, and noted the U.S. has about 80 percent of the wheat market in The Philippines.
– EWINS