SINGAPORE/BEIJING (Reuters) – The Asia-Pacific is
this year likely to import less of the high-protein wheat used
to churn out food such as noodles and pizza as growers in the
region ramp up output, traders said.
Australia, the world’s No.4 wheat exporter, has harvested
larger volumes of protein-rich hard wheat in the 2017/18 crop
year, while the amount of land dedicated to growing wheat in
China is expected to be the biggest in five years, with traders
saying high-quality grain will make up an increasing chunk of
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Tempered Asian appetite for imports of high-protein wheat
could hit supply from key growers of such crops including the
United States and Canada.
Asia is the world’s top consumer, producer and importer of
wheat, with annual purchases accounting for almost a third of
global trade.
“Australia is in better shape this year to meet hard wheat
demand for customers in Southeast Asia,” said a Singapore-based
trader, referring to increased production of protein-rich
Australian Prime Hard (APH) wheat.
A hot and dry 2017 growing season caused Australia’s wheat
crop to shrivel by nearly 30 percent from the season before, its
largest contraction in a decade.
But what the heat took away in quantity was made up for in
protein levels.
“Suppliers in NSW (New South Wales) and Queensland are
preserving higher quality grades for exports,” said a
Melbourne-based trader.
All traders declined to be identified as they were not
authorised to speak with media.
ON THE DOUBLE
China’s wheat area this year is expected to be the largest
since 2012/13 at 24.2 million hectares, the U.S. Department of
Agriculture estimates, with farmers planting more high-protein
varieties.
One grains trader in China said the area under protein-rich
wheat has doubled this year compared with 2016/17, but did not
say how many hectares were planted with such crops.
“The main reason is good quality wheat sells well. Flour
mills are transforming, switching to special flour as diets
“China will not export high-protein wheat, but higher
(domestic) output will take care of some of its own demand which
is (typically) met through imports,” the Singapore trader said.
China is the world’s top consumer, producer and importer of
wheat. It grows several types of high-protein wheat, including
Shiluan 02-1 which is deemed similar to U.S. hard red spring
wheat, known worldwide for its quality.
Tighter supplies last year of high-protein wheat lifted
Minneapolis Grain Exchange prices to a three-year peak
in July.
The market has since eased after U.S. and Canadian spring
crops made it through scorching growing seasons in better
condition than expected, but top quality supplies remain tight
in key exporting nations.
Still, even with reduced demand from China there will be
Asian imports of high-protein U.S. and Canadian spring wheat,
according to trade sources.
“Some mills use Canadian or U.S. wheat for some special
types of flour, which they will continue to buy,” said one
trader.
China’s overall wheat imports are forecast to be about 4
million tonnes in 2017/18, compared with 4.41 million tonnes a
year ago, according to the USDA.
Australia’s main wheat crop is harvested in
November-December, while China has two crops – the winter wheat
crop, which is gathered in May-June, and the spring crop that is
harvested in August-September.
