The continued decline in wheat production and export in Australia for the second year in a row forced Asian milling mills to reorient themselves towards the purchase of Argentinean wheat.
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Indonesia, the second largest wheat purchaser in the world, has entered into an agreement with Argentina to supply about 1 million tons of wheat from February to April. Together with Indonesia, Argentinean wheat was also bought by Vietnam and Malaysia.
It should be noted that Argentinean wheat (with a 12% protein content) in Asian markets is quoted at 255-265 US dollars per ton under CFR conditions, and wheat of the same quality from Australia is quoted at 300 US dollars under CFR conditions.
According to grain traders, the dominance of Argentinean wheat in Asian markets will last until April-May, then wheat from the United States will take the lead.
