Asian importers pay 20–25% more for wheat amid Black Sea disruptions

Asian wheat buyers are being forced to switch to more expensive supplies from Australia and Argentina as shipments from the Black Sea region fall sharply. According to traders, Australian wheat is now costing importers around 20–25% more than Black Sea cargoes did before shipping disruptions intensified.

The impact is particularly visible in Indonesia, the world’s second-largest wheat importer. In September, the country received only around 60 thsd tons of wheat from the Black Sea region, compared with about 500 thsd tons a year earlier.

With Black Sea cargoes scarce, Indonesian millers are increasing purchases from Australia and Argentina. Some processors are avoiding large bulk shipments because of high prices and are instead buying smaller containerized volumes to cover immediate needs.

Romanian Black Sea wheat is currently quoted at around $340/t C&F Southeast Asia, while Australian Premium White wheat is offered at about $345/t for October shipment. These levels are roughly 25% above the prices at which Black Sea wheat was trading before the logistics disruptions intensified.

Traders expect competition for available wheat supplies in Asia to strengthen through the end of the year, when new-crop shipments from the Southern Hemisphere begin to increase. Until then, high prices for alternative wheat supplies are likely to remain a key risk for importers and the region’s flour milling industry.

Tags: Black Sea region, wheat, imports, Asia