United States wheat exporters are seeing rising interest from Indonesia as importers look for alternative suppliers to flood-hit Australia, with negotiations expected to intensify in coming weeks, an industry official said on Thursday.
Indonesia relies entirely on imports for its wheat, and consumption is expected to rise between 5-10 percent to around 5.2 million tons this year, local milling officials say.
Australia traditionally provides over half that, but the wheat industry there suffered a fresh setback from the country's floods disaster on Wednesday with a key grain port shutting down overnight, further restricting exports.
Among the world's four-largest wheat shippers, Australia is now expected to register a fall in exports in the 2010/11 marketing year after floods and heavy rains left much of the harvest unfit for sale to quality-conscious buyers in major markets.
"Usually, if there is no supply from Australia, the next available would be Canada and United States wheat," said a consultant to U.S. Wheat Associates. "We will be expecting to see some increase of wheat (exports) from U.S. and Canada. Definitely there is a big impact on us."
"Probably right now, people are negotiating prices ... there is going to be an impact after a few weeks," he added. "I know of (at least) one company who is now looking for U.S. retailers ... U.S. wheat is always readily available, as long as the price is right."
Indonesia is expected to import about 382,000 tonnes of wheat from the United States in the June 2010-May 2011 marketing year, the U.S. Wheat Associates said on its website.
IMPACT ON INDONESIA?
In 2009, Indonesia was Asia's second largest wheat importer after Japan, with about 5.36 million tonnes. There is far from a consensus on any impact the Australian floods will have on Indonesian supplies.
A member of the Indonesian Wheat Flour Mills Association said imports were unaffected, as the majority of Australian imports came from Western Australia and not the flood-stricken area of Queensland.
Indonesia has 14 flour mills which can process 7 million tonnes of wheat, up from four mills ten years ago, data from the local association showed. Southeast Asia's largest economy, has forecast economic growth of 6 percent this year, and as wealth improves people in urban areas are expected to consume more flour-based food as an alternative to rice.
PT Indofood Sukses Makmur , controlled by Indonesia's Salim family, in October listed its unit PT Indofood CBP Sukses Makmur -- the world's top noodle maker -- to tap the growth of the middle class and domestic demand.
Indofood controls two of the world's largest flour millers through its Bogasari Flour Mills unit. Source: Reuters
Indonesia relies entirely on imports for its wheat, and consumption is expected to rise between 5-10 percent to around 5.2 million tons this year, local milling officials say.
Australia traditionally provides over half that, but the wheat industry there suffered a fresh setback from the country's floods disaster on Wednesday with a key grain port shutting down overnight, further restricting exports.
Among the world's four-largest wheat shippers, Australia is now expected to register a fall in exports in the 2010/11 marketing year after floods and heavy rains left much of the harvest unfit for sale to quality-conscious buyers in major markets.
"Usually, if there is no supply from Australia, the next available would be Canada and United States wheat," said a consultant to U.S. Wheat Associates. "We will be expecting to see some increase of wheat (exports) from U.S. and Canada. Definitely there is a big impact on us."
"Probably right now, people are negotiating prices ... there is going to be an impact after a few weeks," he added. "I know of (at least) one company who is now looking for U.S. retailers ... U.S. wheat is always readily available, as long as the price is right."
Indonesia is expected to import about 382,000 tonnes of wheat from the United States in the June 2010-May 2011 marketing year, the U.S. Wheat Associates said on its website.
IMPACT ON INDONESIA?
In 2009, Indonesia was Asia's second largest wheat importer after Japan, with about 5.36 million tonnes. There is far from a consensus on any impact the Australian floods will have on Indonesian supplies.
A member of the Indonesian Wheat Flour Mills Association said imports were unaffected, as the majority of Australian imports came from Western Australia and not the flood-stricken area of Queensland.
Indonesia has 14 flour mills which can process 7 million tonnes of wheat, up from four mills ten years ago, data from the local association showed. Southeast Asia's largest economy, has forecast economic growth of 6 percent this year, and as wealth improves people in urban areas are expected to consume more flour-based food as an alternative to rice.
PT Indofood Sukses Makmur , controlled by Indonesia's Salim family, in October listed its unit PT Indofood CBP Sukses Makmur -- the world's top noodle maker -- to tap the growth of the middle class and domestic demand.
Indofood controls two of the world's largest flour millers through its Bogasari Flour Mills unit. Source: Reuters
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