Grain importers from Asia now want to buy wheat from the Black Sea region again. After a two-month reluctance to buy due to corona, the lockdown of the economy is loosened again there.
Traders in Indonesia are interested in Black Sea wheat for delivery in July and August. You are now getting quotes. Real estate agents in Singapore are expecting first deals in early June.
Because there were no tourists in Asia, the demand for wheat dropped significantly. You can hear whether the situation is now normalizing again. From January to April, millers in Indonesia bought 3% less wheat. In Thailand, where the economy is even more dependent on tourism, demand fell by as much as 15%.
The International Grains Council expects a surplus of wheat in the world for the 2020/21 marketing year. Production increases by 12 million tons to 2.230 billion tons, while demand drops by 4 million tons to 2.218 billion tons.
Black Sea wheat for delivery in July is priced at USD 220-225 / ton c & f in Southeast Asia. That is around USD 5 / tonne more than at the beginning of May.The courses of the CBoT wheat futures have been on the up for two weeks because the weather conditions in the Black Sea region and in Europe are not optimal. The offer is still plentiful.
Source
Hansa Terminhandel GmbH
