The new season will intensify competition for Asian buyers

2019-07-23 12:08:55
Machine translation
The new season will intensify competition for Asian buyers

in the Coming years in the markets of South-East Asia may increase the demand for Argentine wheat. Local processors are seeking a cheap substitute for Australian wheat, so buy the Argentine with a low protein content to reduce costs and increase profitability.

 

the Shortage of Australian wheat in 2019 and unfavorable forecasts for next season have allowed Argentina to enter the markets of Indonesia and Thailand. This trend will continue in the future, as Asian refiners have already adapted to the South American grain.

 

during the period of active export of the Argentine wheat (December 2018-March 2019), its price was 232,75 $/t, and it was 15% lower than the price of Australian wheat blazersite premium (AWP) and 1% lower than the price of black sea wheat.

 

For the markets of Southeast Asia is now competing Australia, Argentina, Ukraine, USA and Russia. The demand for imported grain is the most growing in Indonesia and the Philippines. The proportion of Australian wheat in the market of Indonesia is 31%, Ukraine – 21%.

 

the Geographic advantages of Australia, is due to close location in relation to Indonesia and Vietnam, negated the annual drought, which has sharply reduced crop and export, especially from the East coast.

 

During October 2018 – may 2019 Australia exported to Indonesia 623,832 thousand tons of wheat, 76,9% below the average 5-year indicator of the corresponding period.

 

Ukraine 2017/18 MG increased exports of wheat to Indonesia by 43.8% to 2.3 million tonnes compared to 2015/16, when you first began to deliver grain to this market. During July, 2018 – April 2019 wheat exports also amounted to 2.3 million tons.

 

most Active exports of wheat from Argentina occurs in the period December - March, while Ukraine supplies more grain in Southeast Asia from August to November, so the export flows almost do not interfere with each other.

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