Vietnam, Thailand in Black Sea wheat deals

A global trading company has sold two cargoes of Black Sea-origin feed wheat to Thailand and one to Vietnam in one of the first new-crop bulk deals to Southeast Asia, traders said on Monday.

Thailand bought two cargoes of 55,000 tonnes each to be delivered in August and September, while Vietnam purchased 55,000 tonnes for August shipment, traders said on the sidelines of an international grain seminar.

"People are really interested in feed wheat now as it is cheaper than the price of corn," said one trading manager with an international trading firm.

"Last week three cargoes were traded and we expect more deals, as the offers are attractive for buyers."

Thailand bought one cargo at $200 per tonne on a cost and freight (C&F) basis, paying $192 C&F for the second cargo. Vietnam paid $195 per tonne C&F.

Riding growing production and bulging stockpiles, Black Sea producers, led by Russia, have been targeting the biggest wheat importers in Asia, a market worth a mouth-watering $5 billion a year where Australia and the United States have so far held sway.

Asia imports more than 20 million tonnes of wheat a year, with top regional buyers Japan, South Korea and Indonesia taking some 14 million tonnes. Smaller buyers such as Malaysia, Bangladesh, Vietnam, Thailand and the Philippines take the rest.