SHANGHAI: 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 that.
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 part by a rise in quality as the hot conditions boosted grain 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.
