June 30, 2008

 

Southeast Asia buys more US wheat as prices cool

     
    

Southeast Asian countries have booked imports of 1.2 million tonnes of US wheat in the marketing year that began June 1, or 450,000 tonnes more than the import bookings for the same period last year, Mark Samson, vice-president for South Asia of US Wheat Associates said Friday (June 29, 2008).

 

Countries whose imports of US wheat have risen in the new marketing year include Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, Samson said.

 

However, sales of US wheat have been slack in South Asia. Only Pakistan has bought wheat recently, and that was from non-US origins, he said.

 

Wheat prices have come off a lot from their recent highs as a large wheat crop is likely to be harvested this year both globally and in the US. 

 

The more attractive prices may explain why Southeast Asian countries are stocking up on wheat, he said.

 

However, rising crude oil prices and the Australian wheat crop's need for more rain are some of the factors supporting prices in the short term, Samson said, adding that chances for a sharp fall is unlikely.

 

The US is the world's biggest wheat exporter.
   

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