India entered into the competition for the wheat markets of Southeast Asia

Indian exporters are planning to increase the supply of wheat to Sri Lanka, Bangladesh and other countries of South-East Asia, where now the growing supply of Australian wheat, which has pushed the black sea.

Second year in a row India was watched by a record wheat harvest at the level of 107,5 million tons, while consumption is 100 million tonnes Due to the oversaturation of the market and low demand of the domestic wholesale prices of wheat fell substantially. Experts expect that the country exports 2-3 million tonnes of wheat, but this was prevented by high bid prices, which failed to meet the world market. But now exports aktiviziruyutsya. During April-October 2020 India has increased compared to the same period in 2019, the export of wheat from 134,617 thousand MT to 511,393 thousand tons, while average export price declined from up to 300-310 230-240 $/t FOB.

Last week, the Indian exporters have signed two agreements to export 200 thousand tons of wheat to Bangladesh for immediate delivery at an average price of 210-220 $/t FOB for the first batch and 250-260 $/t FOB for second. Thanks to cheap freight Indian wheat became the most profitable of the suggested proposals.

Bangladesh in recent years have dramatically increased purchases of black sea wheat due to decreased production in Australia, so now the competition among suppliers is increasing.

blazersite Australian premium wheat (APW) offer for 275 $/MT C&F Southeast Asia, solid Prime Hard wheat (APH) with a high content of protein at 290-295 $/t C&F, and a Standard White wheat (ASW) – $270/MT C&F.

Wheat APW cheaper than black sea wheat of the appropriate class, the price is now 285-290 $/t C&F.

Traders will be forced to reduce prices in order to intensify the export of wheat, especially in North Africa and the Middle East, where Russian and Ukrainian wheat have the lowest price in the range of 275-280 $/t C&F.

as a Result of political disputes, Australia is unable to export wheat to China, so they have to compete with black sea and European wheat in their traditional markets, while China is stepping up the purchase of wheat from France and the USA, and barley from Ukraine and the EU.