December 6, 2011

Vietnam buys 10,000 tonnes Australian feed wheat

A bulk cargo of 10,000 tonnes of Australian feed wheat has been purchased by a Vietnamese feed miller paying around US$225 a tonne on a cost-and-freight basis for January shipment, trading executives said Monday (Dec 5).

Prices have declined further from US$266/tonne, cost-and-freight in mid-November and US$270-274/tonne, cost-and-freight in early-November, a Ho Chi Minh City-based trader said.

East Asian buyers are actively buying Australian feed wheat cargoes due to the latest slump in prices amid a bumper harvest and large inventories.

Australia was saddled with multiyear-high wheat stocks of nine million tonnes on October 1, and inventories will be only marginally lower next October 1, despite strong exports, the International Grains Council said late last month.