Flour mills in Bangladesh to buy more wheat in Russia and the Ukraine, as take care of the offers from India a local supply bottleneck.
Buyer from Bangladesh have bought since mid-July to October so far 800,000 tons of wheat from the Black Sea region for the delivery. These are 550,000-600,000 tons more than in the same period in the previous year.
This strong demand of the top wheat importer in South Asia would have the potential to affect the wheat prices on the futures exchanges. Prices recover from a 10-year low in these days.
India is currently not a supplier on the world market and Bangladesh have to buy large amounts of feed wheat and milling wheat, so the observation of grain brokers in Singapore. The decision, where grain is bought is a matter of price.
The buyer pay currently 155-169 USD/ton fob Black Sea wheat 10,5% protein. For grinding wheat with 11.5 to 12.5% protein, prices are called USD/ton from 165 to 180.
In recent years, India always has operated this demand but recent harvests fell less among other things due to the effects of the El Nino weather phenomenon.
However, Russia and the Ukraine, have tabled both Black Sea, two extremely large cereal crops, which are beyond the silo capacities there. The Ukraine will harvest this year around 3 million tons more grain than last year and comes to 63 million tonnes. And Russia will bring up the largest grain crop in the post Soviet era, so the assessment of the local grain Association.
Still, analysts warn against too much pessimism regarding the price development. Worldwide, there are a lot of countries that depend on Russia's wheat supplies and low prices forcing the buyer to buy larger amounts than usual. The ship cargo from Russian ports currently have waiting times of 10 to 12 days. Therefore Bangladesh buyer bought already 200,000 tonnes wheat of higher quality in Canada.
