Pakistan-Wheat buying for 2009.

PAKISTAN-WHEAT BUYING FOR 2009.

The state-run Trading Corporation of Pakistan is holding two separate tenders to buy a total 400,000 metric tonnes of wheat, with Saturday being the last date to submit bids: It seeks 250,000 tonnes of US-origin wheat in one tender and 150,000 tonnes optional-origin wheat in the other.

Japan’s Ministry of Agriculture, which didn’t hold a wheat import tender this week, could hold one next week.

Other countries, such as South Korea, are likely to buy feed wheat because of its price advantage over corn.

Wheat prices are falling globally as supply continues to outstrip demand.

Market unmoved by India’s basmati rice decision

The decision by India’s government last week to cut the minimum export price of basmati rice to US$1,100 a tonne from US$1,200/tonne and to scrap an INR8,500/tonne export tax didn’t boost exports of the grain.

Anil Mittal, chairman and managing director of KRBL Ltd., a New Delhi-based basmati export firm, said the moves were misguided as the minimum export price is still higher than international buyers are willing to pay for basmati.

Pakistan, India’s main competitor in the basmati rice market was selling most of its produce at US$900/tonne, he said.

Mittal said that the high minimum export price has led to a 30 per cent drop in domestic basmati prices since November, which is hurting farmers.