Asia Grains-Indonesia buys Australian wheat, Black Sea prices rise

06.11.2017

A flour mill in Indonesia bought about 30,000 tonnes of Australian wheat in a recent deal for shipment in January-February as sales of the country's new-crop wheat rise, following a delayed start.

Australian Premium White wheat was traded between $247 and $250 a tonne, including cost and freight (C&F), two trade sources said.

Last month, suppliers of Australian wheat signed one of the first deals to export new-crop wheat to Vietnam.

Exporters typically start selling Australian wheat around July for the crop to be harvested in November and December. But that has been delayed this year after one of the worst droughts in decades drove up local prices for the grain, hitting demand from buyers abroad.

Wheat exports from the Black Sea region to Asia are expected to slowdown after remaining strong over the past several months as grain prices being offered in Russia and Ukraine rise.

Black Sea wheat is being quoted at $218 to $220 a tonne for shipment to Southeast Asia as compared with deals signed earlier at $205-$210 a tonne C&F.

"We have not heard of much business being done for Black Sea wheat over the past few weeks," a Singapore-based grains trader said. "In addition to higher prices, the movement of cargoes becomes difficult from the Black Sea in the winter months."

Chicago wheat futures climbed to a one-week high on Monday with prices rising on expectations of demand for U.S. cargoes after the market dropped to a six-month low last week.


indiatimes

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