A leading Middle Eastern flour miller paid over $23 million in October for a high-grade Australian wheat cargo and is willing to pay 10% more now for a similar consignment, but is unable to seal a deal as exporters can’t find enough food-grade grain.
This is reported by ProAgro Group, citing Bussiness Recorder.
The miller is one of dozens of global importers scrambling to get hold of high-protein wheat, used in making bread, noodles and other foodstuff, after a series of production issues clipped output and potential exports from the world’s largest producers.
Traders who sold high-quality wheat are now trying to cover supplies through alternative sources while buyers, worried about food security, are helping push prices to multi-year highs.
The latest output miss has come in Australia, which is on course to harvest a record 34.4 million tonnes of wheat this season, but was hit by late rains that sapped protein levels.
At the same time, key exporters Russia, United States and Canada have less than normal supply of high-quality wheat following adverse weather.
The dizzying price levels are alarming buyers who are still suffering from the economic impact of the coronavirus pandemic, with decade-high freight costs compounding their problem.
