Asian wheat millers resume purchases after a two-month pause

After more than two months of inactivity, Asian flour millers have returned to the wheat market, resuming purchases amid growing concerns over global supply conditions. Buyers in Indonesia, the world’s second-largest wheat importer, last week secured at least 150,000 tonnes of new-crop Black Sea wheat for July shipment.

Thai millers also booked around 125,000 tonnes of US wheat, according to Singapore-based traders. Market participants say buyers from Malaysia and Vietnam are also actively making inquiries, signaling a broader return of demand across Southeast Asia.

The renewed buying activity follows a prolonged period of caution that began in late February, when geopolitical tensions and rising freight costs disrupted trade flows. Importers had largely stayed on the sidelines, waiting for shipping costs to stabilize and prices to ease, but volatility in the market has persisted instead.

Weather risks are now adding further pressure. Severe drought conditions in the United States and the expected development of El Niño across key producing regions are raising fears of tighter global wheat supplies. These concerns have already contributed to stronger global benchmark prices.

Despite this, analysts note that Asian buyers are not yet engaging in panic buying, relying on relatively ample global stocks and ongoing harvest activity in the Black Sea region. However, market expectations suggest supply could tighten later in the season as weather risks and input costs continue to rise.

Tags: Black Sea region, wheat, Thailand, Malaysia, Singapore, Indonesia, prices