Bogasari, the largest Indonesian importer of wheat, yesterday [Monday] said it is considering replacing purchases of Canadian wheat with product from the USA as drought continues to affect Canadian supplies.
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The Canadian Wheat Board (CWB) has temporarily withdrawn from the world grain market and is currently not quoting for wheat and malting barley, reported Reuters. As CWB is the world’s largest marketer of wheat and barley, this is a significant upset to the global market. It is continuing to meet the requirements of its premium customers and meet existing contracts.
Bogasari imports some 500,000-600,000 tonnes of Canadian wheat every year, but senior vice president Phillip Purnama told Reuters: “We can switch to the US and Eastern Europe. Prices of US wheat are high but we have to ensure a continuity of supply.” The company is also looking at Australian wheat.
