Asian feed wheat demand rises on Northern hemisphere harvest, improved weather

In the latter half of June, Asia experienced a surge in demand for feed wheat due to a decline in global wheat prices, attributed to the harvest of US and European wheat. This drop in prices, along with favorable weather conditions in Europe, Australia, and Russia, has made wheat more affordable for Asian feed buyers. As a result, wheat prices in the US, Europe, and the Black Sea region have significantly decreased. Despite these improvements, trade sources remain cautious about the potential for adverse weather conditions during the growing season. Meanwhile, Australia's wheat crop estimates for the 2024-25 marketing year have seen a slight increase, although they remain conservative as more weather data is anticipated. Trade activity has shown eight cargoes of feed wheat being traded to multiple Southeast Asian destinations and South Korea, with the Philippines continuing to prefer Australian wheat due to its quality. Milling wheat demand has also surfaced in Vietnam, Thailand, and Indonesia.