Pakistani wheat to dent Australia’s exports

Published: May 11, 2011
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Pakistani grain is $80 cheaper, traders see exports of 2m tons.

Pakistani grain is $80 cheaper, traders see exports of 2m tons.

SINGAPORE: 

Australian wheat exports are set to face stiffer competition as Pakistan, which resumed exports after three years, pours grain from its new crop into the market and offers competitive prices to millers in Asia, the Middle East and Africa.

Overseas shipments by Australia, the grain’s fourth largest exporter, have already suffered from the country’s strengthening currency, while a return of Black Sea cargoes, after last year’s drought, promises to worsen the situation.

“There is around $80 spread between the two origins, which makes it attractive for millers to take Pakistani wheat, even though Australian is of better quality,” said a Singapore-based grains trader.

Australian wheat sales have slowed in the past few weeks as a strengthening currency has lifted prices for overseas buyers, while Pakistan has sold some one-and-a-half million tons into the global market since it resumed overseas sales.

Pakistan is making inroads into Australia’s traditional strongholds of Indonesia and Malaysia, while striking deals with millers in Bangladesh, the United Arab Emirates and Tanzania at prices between $300 and $310 a ton, free on board. This compares to Australian prime wheat (APW) being offered around $380 a ton.

Published in The Express Tribune, May 11th, 2011.

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Reader Comments (4)

  • May 12, 2011 - 1:18AM

    Good news. but these kind of commodities should be cheap in Pak 1st as we grow these.
    Why Pak doesn’t focus on software market export.
    We can make billions if work properly.
    We have brains but no one at Govt level to use them
    Or pave their ways for international market.Recommend

  • Bling Bling
    May 12, 2011 - 1:38AM

    Great news.

    Can ExTrib publish articles guiding overseas Pakistanis who maybe willing to invest money in Pakistan? Many of them, i am sure, will appreciate it if you can provide some valuable information because there is too much scam and fraud. Overseas Pakistanis would like to spend their money but they are just too skeptical because of it.Recommend

  • raqib ali
    May 13, 2011 - 12:32AM

    Agree with Bling Bling.

    We want to invest in Pakistan, can ET give easy guidance?Recommend

  • optimist
    May 13, 2011 - 12:33AM

    We are so resilient that after worst floods of human history, we are challenging Australia on wheat export!!!Recommend

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