Asian Buyers Scramble for Wheat as Black Sea Disruptions Bite

Disruptions in the Black Sea region have led Asian wheat importers to seek alternative supplies from Australia and Argentina, according to trade sources. Bangladesh, Indonesia, Vietnam, Malaysia, Thailand, and Sri Lanka are among the countries affected by the delays.

Australian Premium White wheat is being sold for $315-$330 per ton, while Argentinean wheat is going for around $310-$315 per ton, including cost and freight. These prices are higher than most Black Sea cargoes booked at $260 to $280 per ton for August-September arrivals.

The disruptions have pushed global wheat importers into a tight supply situation as Russian and Ukrainian attacks on ports and vessels have disrupted grain terminals. The US agricultural commodity group ADM reported that a drone strike damaged its UEP grain terminal at the Ukrainian Black Sea port of Odesa on August 31.