Source: Ukragroconsult (Ukraine)
Asian flour mills have increased imports of US wheat in recent weeks due to its competitive prices and delays in deliveries from the Black Sea region, grain traders said at an international conference, says by Reuters.
Indonesian importers have concluded deals for approximately 500,000 tons of wheat, Bangladeshi importers for 250,000 tons, and Sri Lankan millers have purchased about 100,000 tons, two grain traders said on the sidelines of the event in Jakarta.
“Millers are buying both soft white wheat and hard red winter wheat from the US,” said one Asian trader. “Severe weather in the Black Sea region delayed shipments, and US prices remained quite competitive.”
As a result, there has been additional demand for US wheat in Asia, in addition to purchases by traditional buyers such as Thailand, the Philippines, and Taiwan, traders said.
US Wheat Demand Soars in Southeast Asia After Trade Agreements
In a recent transaction, a Southeast Asian buyer bought US soft white wheat at $270 per tonne C&F, and another buyer bought hard red winter wheat at $275 per tonne, according to a trader.
Since their employers do not authorize them to speak to the media, both traders, who attended an industry event, requested anonymity.
Southeast Asian countries will likely increase their purchases of US grain and oilseeds, following agreements signed with the Trump administration. These agreements resulted in a shift away from supplies originating in Australia, Canada, and Russia.
“The countries have committed to buying more US grain, but we believe commercial reasons are the main driver of these deals,” the second trader said. “Prices in the US are competitive for buyers who want to purchase American goods.”
The Indonesian Wheat Flour Millers Association signed a memorandum of understanding with US suppliers to purchase at least 1 million tons of US wheat per year between 2026 and 2030.
On July 20, Bangladesh committed to importing 700,000 tons of US wheat annually to strengthen trade ties.
In its monthly report published last week, the US Department of Agriculture raised its forecast for US wheat exports in the current season from 23.5 million tons to 24.5 million tons.