December 17, 2008

Wheat prices may remain supported by demand amid concerns over next year's crop.

 

According to a Commonwealth Bank of Australia analyst report Wednesday, wheat prices are also supported by the falling U.S. dollar, which makes U.S. exports cheaper in buying countries.

 

The report said the upcoming U.S. winter wheat crop faces a cold weather threat, while there are dryness concerns for the South American wheat crop.

 

Meantime, there has been a spate of import tenders globally for buying wheat.

 

The CBA report said Saudi Arabia plans to purchase 500,000 metric tonnes of high-protein wheat in a tender concluding Jan. 5.

 

Pakistan has also floated a wheat import tender for 500,000 tonnes, with Dec. 20 as the last date to submit bids.

 

In other wheat tenders this week, Japan's Ministry of Agriculture is seeking a total of 62,000 tonnes U.S. and Australian wheat in a tender concluding Thursday.

 

Meantime, the Taiwan Flour Millers Association has bought 56,030 tonnes of U.S. No. 1 wheat for delivery in January and February, an association official said Wednesday.

 

In other deals, South Korea's CJ Corp. has bought a total 110,000 tonnes of Brazilian and U.S. soybeans from trading house Archer Daniels Midland, a company official said Wednesday.

 

The U.S. shipment of 55,000 tonnes is expected to arrive in South Korea in February, while the Brazilian shipment is likely to reach in May.

 

Meantime, a CBA report Tuesday said soybean prices will likely fall in the near term, and recover gradually in the second half of 2009.