Asia replaces Black Sea wheat with more expensive Australian and Argentine grain

Asian wheat importers have stepped up purchases from Australia and Argentina amid delays to Black Sea supplies. Over the past 7–10 days, buyers have booked at least 500 thsd tons of alternative wheat to replace cargoes from Ukraine and russia that have failed to arrive on time due to attacks on vessels and grain export infrastructure.

Replacing Black Sea wheat is proving significantly more expensive. Australian Premium White wheat has been purchased at around $315–330/t C&F, while Argentine wheat traded at $310–315/t, compared with around $260–280/t for Black Sea cargoes previously booked for August-September arrival. This means importers are paying $30–70/t more for alternative supplies.

The disruption is particularly significant for Indonesia, the world’s second-largest wheat importer. Other major Asian buyers of Black Sea wheat include Bangladesh, Vietnam, Malaysia, Thailand and Sri Lanka. Grain processors across the region have booked around 2–2.5 mln tons of Black Sea wheat for July-September shipment, covering roughly 30–50% of their import demand.

With shipping delays mounting, buyers are concerned that some contracted grain may not arrive on schedule. Some Asian millers have already turned to smaller containerized wheat shipments to cover immediate needs while avoiding large-volume purchases at current high prices.

Black Sea supply disruptions have already had a significant impact on global markets. Chicago wheat futures have risen by around 35% since late June and reached a 3.5-year high this week. Further disruptions to exports from Ukraine and russia could keep prices elevated and accelerate the shift in Asian demand toward alternative suppliers.

Tags: wheat, Malaysia, Argentina, Bangladesh, replace, global market, Asia, Australia, Ukraine, Black Sea region