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Asian millers turn to Argentina for wheat as drought hits Australian output
20.02.2019 23:17 "Agro Perspectiva" (Kyiv) —
As of now, the 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, Reuters reports.
As to the report, big volumes of exports to Asia from Argentina could further chip away at Australian dominance of the region’s wheat supply, which has already been eroded by growing Black Sea shipments over the past few years.
Reportedly, Indonesia, the world second-largest wheat importer, has already booked about 1 million tonnes of the Argentinian wheat to receive within this year Feb-Apr, while Malaysia and Vietnam have also contracted shipments.
In meanwhile, the traders say this is the first time they are seeing such large volumes of wheat coming from Argentina.
It is to be admitted, presently Asia is the world biggest wheat consumer and importer.
In meanwhile, the traders say they expect wheat from Argentina to dominate within Asia until this year Apr-May, when the US will start shipping its wheat big lots.
As to the USDA forecast, Argentina is expected to produce 19.20 million tonnes of wheat until Jun 2019 ( up against 2018 similar 18.50 million tonnes and much up against 2015/16 similar 11.30 million tonnes).
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