Asia feed manufacturers buy large amounts of feed wheat for two years and turn away from the maize. This year this trend by the drought in Brazil's corn-growing regions, a top export region for the world market, is to accelerate.
Indonesia bought more than 1 million tons of feed wheat this year while Thailand before bought until the end of the year already 2 million tons. This is significantly more than in previous years.
This is good news for the major wheat producers such as the Black Sea region, and Argentina, where approaches the spread between the grinding wheat for human consumption and feed wheat.
Ukrainian wheat 10,5% protein fob costs 170 USD/ton for August shipment, only 8 USD/tonne less than the price of milling wheat, of 12.5% must have protein. Years ago, the spread was large ever 20 USD.
Last week Thailand bought 60,000 tons of Black Sea wheat for 187 USD/ton including freight and cost for August delivery. Most other feed manufacturers in Asia first contact seller in the Ukraine. But also Argentine wheat and wheat from France have been loaded after Asia. Argentina produced already 400,000 tons since January.
Even Viet Nam that blended only maize in the diet, is now interested in feed wheat. Trade relations from there to Europe are likely to benefit France and Bulgaria very good.
The corn supply from Brazil declined in recent weeks because of the heat and dryness, it had to import even maize from neighbouring countries. Alone, Indonesia, the economy's strongest economy in Southeast Asia, has acquired 1 million tons of wheat instead of maize in April, also because the local maize production is not sufficient.
