Asian millers turn to Argentina for wheat as drought hits Australian output

(Reuters) – Asian wheat millers are snapping up cargoes of the grain from Argentina to arrive in the first-half of the year, typically peak-export season for traditional supplier Australia where a second year of drought is hitting production. Large volumes of exports to Asia from Argentina could further chip away at Australia’s dominance of the region’s wheat supply, which has already been eroded by growing Black Sea shipments over the past few years. Indonesia, the world’s second-largest wheat importer, has booked close to 1 million tonnes of Argentinian wheat for arrival between February and April, while Malaysia and Vietnam have also contracted shipments, according to estimates from two Singapore-based traders who were involved in some of the deals. “It is for the first time we are seeing such large volumes of wheat coming from Argentina,” said one of the traders, who did not want to be identified as he was not authorized to speak to media. “This is largely because Australia is absent from the market.” Argentina wheat exports to Asia vs total: Argentinian wheat with 12-pct protein has been traded in Asia at around $255-$265 a tonne, including cost and freight (C&F). That compares with similar quality Australian grain… continue reading

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Source: CTRM Center

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