exportações de trigo (wheat exports Argentina)

Argentina to extend wheat exports to Southeast Asia

Jul, 23, 2019 Posted by datamarnews

Week 201931

Wheat exports from Argentina is expected to gain ground in Southeast Asian markets in the upcoming years, as countries in the region seeking cheaper options for Australian wheat are buying low-protein products from the South American supplier in an effort to cut costs and increase the grinding margins.

Australia’s climate problems and lack of supply this year have given Argentina an opportunity to increase its share in markets such as Indonesia and Thailand. This trend is likely to continue as countries in the region are becoming more accustomed to this variety of wheat.

During Argentina’s peak export period, between December 2018 and March, its average wheat price was US$232.75/ton, 15% cheaper than Australian Premium White wheat and 1% cheaper than Black Sea wheat, according to data from the International Grains Council and Platts.

Southeast Asia’s milling industry is remarkably efficient and has been able to adapt to lower quality wheat such as Argentina’s.

Global exporters such as Australia, Ukraine, Russia, the United States, and Argentina have been rushing to supply wheat to Southeast Asia amid growing demand from Indonesia and the Philippines, making the region the world’s largest wheat import market.

Australia has a geographical advantage in terms of proximity to consumers like Indonesia and Vietnam, but the drought has caused domestic premiums to increase dramatically, making wheat exports unviable, especially from the east coast.

Wheat exports from Argentina in the first six months of its current season (December-November) more than tripled to 1.9m tons from the same period last year, according to data from Argentina’s National Statistics and Census Institute (INDEC). In addition, Argentina’s exports in 2017-18 jumped more than eightfold in the year to 611,953 tons.

In February, Argentina was trading its wheat in Asia at between US$255 and US$265 per ton, including shipping cost, compared with Australian wheat which traded at US$300 per ton according to tomedia reports.


Source: Platts

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