Wheat

Bulgaria’s wheat and barley exports are set to fall to 4 million mt and 250,000 mt respectively.

U.S. wheat futures dropped more than 2 percent on Monday amid fears over a prolonged trade dispute between the United States and China. The most active wheat futures on the Chicago Board of Trade were down 1.3 percent at $5.08-1/2 a bushel.

Wheat prices edged up by Rs 5 per quintal at the wholesale grains market today due to increased offtake by flour mills amid pause in arrivals from producing belts. pick up in demand from flour mills against restricted supplies from producing regions, mainly attributed the rise in wheat prices.

Jordan’s Ministry of Trade and Industry cancelled a tender to buy 120,000 tonnes of wheat in a tender. Two suppliers, Dolje and Ameropa, presented offers but no wheat was purchased.

Saudi Arabia’s state grain buyer, the Saudi Grains Organization (SAGO), said on Sunday that it had approved the purchase of a maximum of 700,000 tonnes of wheat annually from local farmers for five years. Wheat prices for the coming agricultural season, 2018-2019, will be similar to the organisation’s global import prices or at 1,250 riyals ($333) per tonne, whichever is higher. Prices will be reviewed after two agricultural seasons. SAGO imports Saudi Arabia’s entire wheat supply of about 3.5 million tonnes a year. Demand for wheat is expected to expand by an annual 3.2 percent to reach 4.5 million tonnes by 2025, largely due to population growth.

Saddled with huge stock, the government plans to offload 7-8 million tonnes of fresh wheat in the open market at Rs 1,890 per quintal rate for meeting the demand from flour millers and other bulk consumers. The food ministry is likely to sell 7-8 million tonnes of wheat grown in 2017-18 crop year that ended last month. The rate at which the grain will be offloaded would be around Rs 100 per quintal higher than the last year. Last year, the OMSS rate for wheat was fixed at Rs 1,790 per quintal – ex-Ludhiana. As on June 1, the government was holding a wheat stock of 44 million tonnes. Its procurement agency FCI has purchased 35.5 million tonnes of fresh wheat in 2017-18.

The United Nations Food and Agriculture Organization has cut its forecast for global wheat output for 2018-19 by 18 mln tn to 736.1 mln tn. The lower forecast follows a cut in estimate for output in the European Union, Russia and Ukraine. The agency has also lowered outlook for global ending stocks to 264.2 mln tn from a record 283.4 mln tn estimated last month. Global wheat utilisation has also been slashed to 741.1 mln tn from 743.5 mln tn projected earlier.

Japan’s Ministry of Agriculture bought 79,770 tonnes of food-quality wheat from the United States and Australia in a regular tender that closed late on Thursday. it has suspended its tender and sale of wheat from Canada after grain containing a genetically modified trait was discovered last summer in Canada’s Alberta province.

Dry weather across northern and central Europe will see Germany’s winter wheat yields drop 10% year-on-year.

Iraq’s state grain buyer purchased 100,000 mt of Australian wheat from CBH, in an international tender.

Japan will import 27,210 tonnes of feed-quality wheat and 38,180 tonnes of barley for livestock use, via a simultaneous buy and sell (SBS) auction. The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley to be loaded by Oct. 31 and arrive in Japan by Dec. 28 in the tender that is usually conducted weekly. It is seeking the same amount for each grain to be loaded and shipped during the same period in a similar tender that will be held on July 11.

Japan’s Ministry of Agriculture is seeking to buy 79,770 tonnes of food-quality wheat from the United States and Australia in a regular tender. it has suspended its tender and sale of wheat from Canada after grain containing a genetically modified trait was discovered last summer in Canada’s Alberta province.

Kansas winter wheat harvest was 71% completed by July 1 compared with 52% a week earlier and 63% as the 2013-17 average for the date. Harvest in adjacent states was 98% completed in Oklahoma (90% as the average for the date), 80% in Texas (83%), 7% in Nebraska (9%) and 21% in Colorado (9%).

Bangladesh to import 50,000 tonnes of wheat drew its lowest offer from Singapore-based Agrocorp at $256.38 a tonne. Two other trading houses competed for the tender from Bangladesh’s Directorate General of Food, quoting deliveries at $258.95 a tonne and $262.89 a tonne. The price includes shipping, insurance and discharge costs. Bangladesh emerged as a major buyer of rice and wheat in 2017 after floods destroyed its crops, sending rice prices to record highs and prompted many people to switch to flour. Bangladesh has turned to the Black Sea region for wheat as supply from India dwindled to meet growing demand while the country’s output has stagnated at around 1 million tonnes.

Chicago wheat futures rose 1 percent as investors looked for bargains following deep losses in the previous session, although a lack of demand for U.S. shipments is expected to keep a lid on the market. The Chicago Board of Trade most-active wheat contract had risen 1 percent to $4.85-1/4 a bushel. There is limited downside risk to wheat prices when you look at the supply situation. But the focus seems to be demand, U.S. exports are not doing very well.

Government’s wheat procurement for the current year started April has topped 35.0 mln tn, up 15.8% on year. The Centre has so far purchased 35.5 mln tn wheat during the current marketing year, against a target of 32 mln tn. In Punjab, the government has purchased 12.7 mln tn wheat so far, while the target was 11.9 mln tn.In Haryana, 8.7 mln tn wheat has been purchased against the target of 7.4 mln tn. In Madhya Pradesh, another major wheat producing state, the procurement was 8.4% higher on year at 7.3 mln tn. The procurement was 42.8% higher on year in Uttar Pradesh at 5.1 mln tn.

Bangladesh has invited bids for import of 50,000 tn milling wheat from international suppliers. The deadline for submission of quotations on Jul 3, and bids will be opened on the same day. The country has sought delivery of the consignment within 40 days from the date of signing of the contract.

The USDA reported all wheat export sales in the week of June 14 at 461,633 MT, on the higher end of expectations. That was 23.6% larger than the same week last year and a jump of 52.7% from a week ago. The Philippines purchased 137,000 MT, with Japan buying 118,500 MT. Weekly exports were up 37.71% from the week prior at 426,920, which was still 31,63% below the same week last year. In Japan’s weekly MOA tender, purchased 91,188 MT of combined US (65,943 MT) and Australian wheat. Consultant Agritel is projecting Russia’s 2018 wheat crop to drop to 67.4 MMT. That is on the lower end of most estimates, compared to the USDA’s 68.5 MMT.

Australia exported 1.39 million tonnes (Mt) of wheat in April, down 5 per cent from 1.46Mt in March. The April figure is made up of 136,654 tonnes of containerised wheat and 1.26Mt of bulk wheat, both down from the corresponding March-shipment figures. In the bulk market, Indonesia followed by The Philippines remained Australia’s two largest customers by volume in April with 261,447t and 156,903t respectively. Durum cargoes to Nigeria which totalled 104,400t made the North African nation Australia’s third-biggest bulk market for the month. In containerised exports, Vietnam followed by Taiwan and Myanmar were Australia’s largest markets by volume in April.

On June 19, Egypt purchased 240 KMT of milling wheat from Romania to be delivered on August 1 – 10, 2018 at an average price of USD 218.10/MT C&F. The price in the previous tender equaled USD 224.44//MT C&F.