A slowdown in Russian wheat shipments and reduced harvests from drought-hit Australia have prompted Asian flour mills to lock in long-term supplies earlier, with output set to tighten during Q2 2019, according to one trader. The move is in contrast to recent years, when abundant supply meant Asian mills purchased wheat just a few months in advance. Asian wheat imports are predicted to reach the second-highest total on record of 55.13 million metric tonnes (mt) this year, up over 40 percent since 2010-11, while consumer demand in Asia is set to be 300 million mt during the 2018-19 crop year.
A slowdown in Russian wheat shipments and reduced harvests from drought-hit Australia have prompted Asian flour mills to lock in long-term supplies earlier, with output set to tighten during Q2 2019, according to one trader. The move is in contrast to recent years, when abundant supply meant Asian mills purchased wheat just a few months in advance. Asian wheat imports are predicted to reach the second-highest total on record of 55.13 million metric tonnes (mt) this year, up 46% since 2010-11, while consumer demand in Asia is set to be 300 million mt during the 2018-19 crop year.