Asian Buyers Turn to Alternative Wheat Supplies Amid Black Sea Disruptions

Asian wheat importers are scrambling to replace Black Sea cargoes delayed by attacks on vessels and grain export infrastructure. Buyers in Bangladesh, Indonesia, Vietnam, Malaysia, Thailand, and Sri Lanka have turned to Australian and Argentinean wheat in recent deals.

According to trade sources, at least half a million metric tons of Australian and Argentinean wheat have been bought in bulk over the past week or ten days to fulfill urgent needs. Importers are paying sharply higher prices for alternative supplies, with several countries relying heavily on imports to meet domestic demand.

The disruption to Black Sea grain exports has pushed global wheat importers into a tight supply situation. A drone strike damaged ADM's UEP grain terminal at the Ukrainian Black Sea port of Odesa on August 31. Buyers paid around $315-$330 per ton, including cost and freight, for Australian Premium White wheat, while deals for Argentinean wheat were concluded around $310-$315 per ton.

Grain processors in Asia have booked about 2.0 million to 2.5 million tons of Black Sea wheat for July-September shipment, but growing shipping delays have fueled concerns that a portion of the grain may fail to reach buyers. Some millers are preferring container shipments to meet immediate needs.