Australia returning to the wheat market

UkrAgroConsult

Article author:

Maryna Marynych

Grain Market Analyst

In the last two seasons, the Australian wheat crop has suffered from drought that allowed Ukraine to top the list of wheat exporters to Indonesia – its 2019/20 share reached 29%.

Ukrainian exporters got quite rapidly adapted to Indonesia’s qualitative requirements. Apart from fair quality, Ukrainian grain was also attractive regarding its price despite more expensive freight from Black Sea ports.

Australia may return to the Indonesian wheat market in MY 2020/21 that will be contributed to by the following factors: a good crop, a high price of Black Sea wheat, duty-free export of feed grain, etc.

In Australia, the season will fully begin in November, therefore export statistics still only reflect low shipments of old-crop wheat.

For Ukraine, the season began in July. Therefore, according to customs statistics, the country already shipped 1.44 MMT to Indonesia in the first three months.

UkrAgroConsult forecasts Australia’s share in Indonesian wheat imports to increase significantly in MY 2020/21, up to the 2015-2017 level.

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Tags: Australia, wheat market