November 15, 2006

Brazil to be largest wheat importer in 2006/07, says USDA

Brazil's global wheat trade in 2006/07 could reach 112 million tonnes according to the USDA's Economic Research Service (ERS).

Increased production boosted export prospects for Russia by 1 million tonnes to 8.5 million, said the ERS report.

Strong sales of feed wheat by China to Asian markets boosted export prospects 0.5 million tonnes to 2.5 million. China's imports could remain less than 1 million tonnes, making it a significant net exporter. The increased exports by Russia and China have been offset by lower shipments expected from Australia and Ukraine, according to the agency report.

Australia's exports fell 1 million tonne this month on account of lower production and increased feed use while Ukraine recorded low exports due to stringent government policies limiting shipments.

Iraq's imports were reduced 0.5 million tonnes to 3.5 million as the pace of purchases has been slow. This was partly offset by Brazil, as an increase of 0.3 million tonnes boosted projected imports to 7.3 million, said the report adding this would make Brazil the world's largest importer, slightly ahead of Egypt which incidentally registered highest imports in 2005/06.