Less demand for feed wheat in Vietnam seen
Vietnam's wheat consumption for marketing year 2015-16 is expected to remain unchanged from that of MY 2014-15, which was 2.15 million tonnes, due to less demand for feed wheat from the feed industry, the USDA Agricultural Foreign Service (FAS) said.
The US Department of Agriculture's FAS also revised Vietnam's wheat imports volume in MY 2014-015 slightly up from 2.296 million tonnes to 2.370 million tonnes, or an increase of 74,000 tonness compared with the official number, due to the increase in the use of feed wheat.
Imports for MY 2015-16 is forecast unchanged at 2.60 million tonnes.
Australia remained the No. 1 milling wheat supplier of Vietnam, although its market share shrank from 70-80% of Vietnam's total wheat imported volume in MY 2013-14 to just only around 50% in MY 2014-15.
Canadian and Brazilian wheats picked up shares from almost nothing in MY 2013-14 to more than 300,000 tonnes each in MY 2014-15. The forecast for total import of wheat into Vietnam remains unchanged in MY 2015-16.
FAS noted that the recent year-on-year volume of US wheat exported to Vietnam keeps on increasing. However, it added, exports of US wheat into Vietnam, which previously was expected to be around 320,000 tonnes in MY 2014-15 has been revised down to around 260,000 tonnes due to strong price competition from other wheat sources, especially Canada.
It put the forecast for import of US wheat in MY 2015-16 at 300,000 tonnes.