Australian wheat substitutes corn in Asia
Asian buyers are snapping up cargoes of low-grade Australian wheat, with most of them using it as feed grain in place of costlier corn.
Vietnam has recently made purchases of feed-grade Australian wheat around $295-$305/ton, cost and freight, trading executives said.
They said sales of Australian wheat for bulk shipment have also been made to Bangladesh and the Philippines.
Several sales of Australian wheat with 12.5% moisture and 62 kg-per-hectolitre density to Vietnam have been made for container shipment in January, said a Singapore-based executive with a global trading company.
Low-grade wheat is currently being offered around $265/ton, free-on-board for bulk shipment next month, and sales of several hundred thousand tonnes to Asian destinations have already been made, an Australia-based trading executive said.
South Korea has also expressed interest in low-grade Australian wheat for feed use, but is seeking grain with 72 kg/hectolitre density, much higher than that of current offers.
Traders said with prices of corn rising above $300/ton, cost and freight, for delivery into southeast and north Asia, buyers are eager to purchase Australian wheat instead.
Source: CME
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