WA crop frosted
ASIAN flour millers are expected to seek rare wheat shipments from Argentina in coming months as a second year of drought in traditional supplier Australia curbs supplies.
At present, Asian wheat importers, including the world’s biggest buyer Indonesia, are buying most of their wheat from the Black Sea region.
But Russia and Ukraine are expected to run out of surplus supplies by the end of the year due to an autumn output and strong demand for exports, forcing buyers to seek shipments from alternative origins, traders and analysts said.
“From December onwards and in the first quarter of 2019, we expect some of Argentina’s surplus wheat to come to Asia,” said one Singapore-based trader at an international trading company.
“We have lower wheat production in many exporting countries but Argentina is looking at a bigger crop.”
Asia is the world’s biggest consumer of wheat.