Sunday, 4 January 2015

Wheat offered for export after imports in 2014

Wheat from Pakistan is again being offered in world export markets following a long period in 2014 when the country was a major importer, European traders said on Friday. A European trader said he had received offers from Pakistani traders for wheat from government inventories. "It appears stocks are being cleared ahead of the start of Pakistan''s upcoming harvest around April," the trader said.

Traders said Pakistan could add several hundred thousands of tonnes of extra supply in world markets, helping to compensate for the exit of Russia from the export sector. Pakistani importers made a series of large wheat purchases in 2014 following a disappointing harvest that pushed up local prices.

In November, Pakistan imposed a 20 percent import duty on wheat to help protect local farmers from imports, leading to the cancellation of some of the import deals. "Pakistani traders are seeking to sell wheat but with fob (free on board) prices of around $345 a tonne I do not expect immediate export sales apart from possibly to Sri Lanka where Pakistani wheat receives specially low import duties," a second trader said.
Copyright Reuters, 2015

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