Higher Australian wheat prices push Asian buyers to seek alternatives

Asian importers are increasingly looking for alternatives to Australian wheat after prices rose sharply amid disruptions to grain supplies from the Black Sea region. By the end of August, Australian Premium White (APW) was assessed at $312/t FOB Kwinana, while Australian Standard White (ASW) reached $302/t, making supplies from other origins more attractive.

The US has emerged as one of the main alternatives. On August 19, the Philippines purchased US Soft White Winter Wheat for September shipment at $295/t CFR Batangas and Bataan instead of an expected cargo of Australian ASW. Vietnamese buyers have also booked several cargoes of US wheat.

Traders are also turning their attention to India. Indian wheat remains relatively expensive at around $325/t FOB, but could become more competitive if disruptions to Black Sea supplies continue to support global prices. In August, a deal was concluded to ship Indian wheat to Sri Lanka, marking the first such shipment in many years.

Meanwhile, Southeast Asian buyers remain reluctant to commit to large bulk cargoes. Some importers continue to purchase wheat in containers to cover near-term requirements while monitoring developments in Black Sea exports.

Market participants are cautious about buying large volumes at current high prices, as a recovery in stable grain shipments through the Black Sea could trigger a rapid decline in prices. The disruption to Black Sea exports has therefore not only supported Australian wheat prices but also accelerated Asian importers’ search for alternative suppliers.

Tags: Australia, prices, wheat, alternatives, Asia