May 24, 2010

 

IGC sees global wheat trade at 119.8 million tonnes

 
 

Global wheat trade for the coming season is estimated at 119.8 million tonnes, almost at the level of the 2009/10 season, according to the International Grains Council (IGC).

 

However, IGC expects the decline in wheat imports by South-East Asia and the Middle East, which are the major buyers of the Black Sea grain. This can reduce the demand for grains from the Black Sea region.

 

For example the growth of purchases by Saudi Arabia will be covered by imports of Canadian, Kazakh, American, Australian and German wheat. Russian and Ukrainian wheat does not meet the required quality.

 

The growth of demand from Morocco and Algeria will not affect the exports of Black Sea grain greatly as these countries purchase mainly French grains.

 

Iran and Pakistan intend to export grain. At the same time, the reality of these intentions is questionable. State budget subsidies are needed to encourage the export because domestic prices are high. If these countries begin to export grains, this certainly will provoke the narrowing of demand for Black Sea grains.