SINGAPORE - Australia sold more than 100,000 metric tons of new-crop wheat to Thailand and the Philippines this week, while Vietnam is seeking 100,000 metric tons of feed wheat, as declining global prices caused by a supply glut attract Asian buyers.
Thai millers paid $213 a metric ton, including cost and freight (C&F), for 55,000 metric tons of Australian premium wheat for February shipment, two trade sources said.
Australia sold about 60,000 metric tons of standard white wheat to mills in the Philippines at $203 a metric ton, C&F.
International wheat prices have been falling on abundant supply, with the most-active CBOT wheat contract on track for a near 5 percent decline this week, its biggest weekly fall since the start of July. It is down about 10 percent so far this year.
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The International Grains Council on Thursday raised its forecast for wheat production in the 2016/17 season to a record high, pushed by upward revisions in output in Russia, India and the United States.
Australia is also on track for a near record production of 28 million metric tons wheat this year as ideal weather is boosting yields across the country's eastern and western grain producing regions, traders said.
The country produced about 24.5 million metric tons of wheat from the last harvest, according to the U.S. Department of Agriculture data.
"The spread between Australian and Ukrainian wheat has narrowed considerably," said one Singapore-based trader. "We are seeing some interest from buyers to take Australian wheat. We expect more deals next week."
While Ukrainian wheat is quoted between $190 and $195 a metric tons, C&F, a similar variety of Australian wheat was being offered between $200 and $205 a metric ton.
"Last month, the spread was as much as $30 a metric ton," the trader said.
Vietnam is seeking around 100,000 metric tons of feed wheat for September-October delivery, but no deal could be signed, traders said. Buyers are looking for wheat with 10.5 percent protein.
"Prices are coming down, so the buyers expect further declines in the market," said a second Singapore-based trader.
