Brazil Buys Russian Wheat
Brazil has begun a purchasing program to cover some of it's 2009/10 wheat import needs from Russia, according to media reports from Sao Paulo.
The country has bought 25,000 tonnes of Russian hard wheat for delivery to Brazil’s northeast in May, as Brazilian mills prepare to find alternatives to scarce Argentine wheat this year.
Argentina typically supplies Brazil with 95% of its wheat import needs, but with the Argy harvest down to around 8.3mmt from 16mmt last year, Brazil is having to look outside Mercosur for an estimated 2mmt of wheat in the 2009/10 season. Half of that is expected to come from Russia.
The Russian wheat was priced at around a USD60/tonne discount to US hard wheat, the reports said.
The country has bought 25,000 tonnes of Russian hard wheat for delivery to Brazil’s northeast in May, as Brazilian mills prepare to find alternatives to scarce Argentine wheat this year.
Argentina typically supplies Brazil with 95% of its wheat import needs, but with the Argy harvest down to around 8.3mmt from 16mmt last year, Brazil is having to look outside Mercosur for an estimated 2mmt of wheat in the 2009/10 season. Half of that is expected to come from Russia.
The Russian wheat was priced at around a USD60/tonne discount to US hard wheat, the reports said.