Asian Buyers Snap Up Spring Wheat on Competitive Prices-Traders

(Agriculture.com) – Asian flour millers have been actively buying U.S. and Canadian spring wheat since last week as competitive prices drive demand for the grain used largely in making breads and pizza crusts.

Millers from the region’s top importer Indonesia, and other countries such as Japan, the Philippines and Thailand, have signed contracts to import about 300,000 to 400,000 tonnes since last week, two Singapore-based trade sources said.

“We usually don’t see such strong buying of spring wheat in such a short span of time,” said one of the sources who works with an international trading company.

“Prices have been pretty competitive. The price of spring wheat is close to the lowest since January if not the lowest,” the trader said.

While some millers were taking spring wheat at around $250 to $255 a tonne, including cost and freight (C&F), others have taken cargoes on a free-on-board basis (FOB) at $225 to $230 a tonne, the sources said.

Most the cargoes for spring wheat with about 13.5% to 14% protein content are for shipment in September.