Asia Grain Outlook on Monday: Pakistan purchase may support weak wheat

 

 

Pakistan's expected purchase of 400,000 metric tonnes or more of wheat over the next 10-15 days could support weak international prices.

 

The state-run Trading Corporation of Pakistan, or TCP, closed bidding for one tender of 150,000 tonnes of optional-origin wheat on Saturday, for which total bids of 250,000 tonnes have been received.

 

The lowest bid price of US$231.55/tonne is around 8% higher than the purchase price of 590,000 tonnes wheat TCP imported in December 2008, its last tender.

 

Deadline for bidding in another TCP tender to buy 250,000 tonnes of U.S. wheat will expire on Saturday.

 

In other commodities, a report by the International Grains Council Monday said that demand for rice exports from Thailand, Vietnam and Pakistan was good in January, amid tight supplies and demand from African countries and the Philippines.

 

The IGC said that the average price for Thai 100% grade-B rice was US$592/tonne, free-on-board, up US$17 from December. While availability of exportable rice in Thailand was declining due to state procurement from farmers, demand from African countries was quite robust, the IGC said.

 

In Vietnam, the average export price for 5%-broken rice fell to US$400/tonne in January, but the average for the 25%-broken grade was higher at US$365/tonne, it said.

 

Among last month's major rice deals listed by the IGC was the purchase by the Philippines of around 1 million tonnes of 25%-broken rice at US$380/tonne, free on board.

 

Iraq bought 340,000 tonnes of rice, including 80,000 tonnes of 5%-broken rice from Vietnam at US$411-US$440/tonne, free on board, 30,000 tonnes from Pakistan at US$375/tonne, 60,000 tonnes from Thailand at US$429/tonne and the rest from undisclosed origins.

 

Nigeria also bought 250,000 tonnes rice from Vietnam last month, the IGC said.