Pakistan Strikes First New-Crop Wheat Export Deals- Industry Officials

Pakistan has struck its first export deals for at least 200,000 metric tons of new-crop wheat for shipment to Malaysia, Vietnam and the United Arab Emirates, a senior industry executive said.The deals clear up doubt in the market about whether Pakistan will permit exports from this year's ongoing harvest. Until now, it has exported only old stocks from earlier harvests. Pakistan has filled a crucial gap in Asian and African wheat trade due to a lack of supply from the Black Sea region.

Several deals have been arranged for new-crop exports for shipment in both bulk and containers, Muhammed Najib Balagamwalla, chairman of Karachi-based commodities trading company Seatrade Group, said.

The new-crop wheat sales were made between $302/ton and $310/ton, free-on-board for prompt shipment, and more are in the works, Najib said. Najib said Pakistan has exported around 1.2 million tons of wheat from its old stocks, with another 200,000 tons in the pipeline. He said the focus is now turning to the new crop because it is around $20-$30/ton cheaper.

At least two bulk cargoes of 20,000 tons-25,000 tons of the new crop have been sold to buyers in Dubai. Sales to Malaysia and Vietnam for shipments in containers were made at $309-$310/ton, C&F and $315-$319/ton, C&F, respectively. He said more sales are likely to Africa and the Middle East in coming weeks. Najib said exports of wheat from Pakistan's ongoing harvest may rise to 1.0 million metric tons by August.

The Punjab provincial government is granting permission to exporters to purchase wheat from growers in lots of at least 500 metric tons, he said. Exporters expect the government of Sindh province to grant similar permits once its own local procurement program is complete. Pakistan's wheat output this year is estimated at around 24.2 million tons, up from 23 million tons in 2010.

(Source: http://www.indiainfoline.com/Markets/News/Commodities-Buzz-Pakistan-Strikes-First-New-Crop-Wheat-Export-Deals-Industry-Officials/3674305866)