July 17, 2006

World wheat trade up

For 2006/07 world wheat trade prospects increased 0.7 million tonnes to 111.3 million with increased imports for Brazil, Turkey, and other countries, according to the USDA's World Agricultural Supply and Demand Estimates released on Friday (Jul 14). 

Trade data for 2005/06 show that China has been exporting wheat more rapidly and thus estimated exports were increased 0.3 million tonnes to 1.4 million, the report said.

With imports remaining estimated at 1.3 million tonnes, China would be a slight net exporter of wheat in 2005/06, according to the report. China faces some difficulties exporting wheat as its quality is normally quite variable.

Thus, wheat from China is mainly used for animal feed. China wheat has found a market in the Philippines where high tariffs on corn imports has led feed compounders there to turn to wheat from China.

With increased production in 2006/07, the USDA expects relatively low prices in China to encourage increased exports.

Meanwhile, improving production prospects boosted the outlook for Ukraine's 2006/07 wheat exports 1.0 million tonnes to 2.5 million, the report suggests.

Canada's expected 2006/07 exports were increased 0.5 million tonnes to 18.5 million, ousting Australia as the second largest wheat exporter.

Export prospects for Australia were reduced 1.5 million tonnes to 17.5 million because of reduced production, USDA said. 

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