China makes big buy
Chicago, Ill (Reuters) — China bought a total of 1.3 million tonnes of U.S. wheat in the past week, the U.S. Department of Agriculture said July 8.
China, the world’s largest wheat producer, is “on an active buying kick” as the government builds its grain reserves, a U.S.-based wheat trader said.
It also booked wheat purchases from Australia last week and from France two weeks ago.
Untimely rains at harvest damaged some 10 million tonnes of China’s crop, traders said.
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Russia’s wheat prices fall despite weather
MOSCOW, Russia (Reuters) — Russia’s wheat export prices fell last week despite concerns over pockets of drought.
Russia needs a good harvest to replenish stocks and to boost exports after drought last year slashed its wheat crop by a third.
With harvest underway, prices for wheat with 12.5 percent protein fell $5 to $245-$255 per tonne in the Black Sea on a free-on-board basis, the Institute for Agricultural Market Studies (IKAR) said.
IKAR cut its wheat crop forecast by three percent to 52.4 million tonnes due to dry conditions in the Volga and Urals regions.
SovEcon agricultural analysts also cut its wheat forecast to 49.5 to 51.5 million tonnes from a previous view of 50.5 to 52.5 million, citing lower-than-expected yields as the harvest progressed.
Argentina orders industry to supply local market
BUENOS AIRES, Argentina (Reuters) — Argentina’s government applied a special law that forces wheat and flour producers to prioritize supplying the local market after shortages increased prices on food staples such as bread.
The controversial measure gives the government powers to seize companies’ grain, impose fines, shut down plants and even imprison those who fail to comply.
Stocks of old crop wheat are tight and farmers are just now seeding the 2013-14 wheat crop.
Growers complain that export curbs on wheat and corn push farmers into soybeans, which do not face the same kind of trade restrictions.
GMO Wheat issue
Japan may import U.S. western white wheat
TOKYO, Japan (Reuters) — Japan aims to restart buying U.S. western white wheat as early as August, industry sources said, after halting imports following the discovery of an unapproved genetically modified strain in Oregon.
Japan’s farm ministry has said that imports would begin only when it receives details of a U.S. investigation into how a unapproved GMO strain of wheat entered the system.
It has also said that the U.S. should implement tests for shipments before they head overseas.
