News

Indonesia is increasing imports of low-quality wheat

Maize (Corn)
Wheat
Indonesia
Market & Price Trends
Published Feb 22, 2024

Tridge summary

Indonesia is importing more low-quality wheat due to a severe drought caused by the El Nino phenomenon, which has reduced the supply of feed grain. The country has contracted 300,000 tons of Black Sea wheat from Ukraine and Russia, preventing further price drops in Ukraine. The cost of corn in Indonesia is currently double that of imported wheat, leading to an urgent need for wheat for animal feed. Despite competition, Ukraine has increased its wheat supplies to Indonesia by 75% to 612,000 tons in 2023/24, thanks to the Black Sea grain corridor.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Indonesia is increasing imports of low-quality wheat, and recently contracted 300,000 tons of Black Sea wheat, which will keep prices in Ukraine from falling further. A severe drought caused by the El Nino phenomenon in the second half of last year delayed the planting of corn and sharply reduced its yield, which reduced the supply of feed grain. Therefore, if in 2023 Indonesia imported 10.87 million tons of wheat, then in 2024 it will increase imports by at least 10%. In recent weeks, Indonesian importers have contracted 300,000 tons of low-quality wheat from Ukraine and the Russian Federation for delivery in February-March at a price of $260-270/ton, including the cost of freight. If agreements for the supply of wheat for the production of flour are concluded 2-3 months before delivery, then currently, in the conditions of a shortage of fodder grain, there is a need for urgent supplies of wheat for feeding animals, since the prices of corn in the country are now twice as high as ...
Source: Graintrade
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