'Australian grain industry should tap India for wheat supply'

A leading US-based commodity market expert has asked Australian grain industry to tap India for supplying premium wheat as its emerging middle class with growing disposable income is after better quality bread.
Chicago-based Emily French, the managing director of US- based agricultural commodities advice and strategy group ConsiliAgra, was speaking to the industry and market leaders and government officials at the Australian Grains Industry Conference here yesterday.
"It is India's time to shine in world grain markets," French, the international guest speaker was quoted as saying in media reports.
"China has been the prolific commodity story of the past decade. But while China has shifted their consumption of wheat to proteins, like pork, and increased vegetable oil, growth for wheat continues for India and will continue as it seeks milling quality supplies.

Indians (a one-billion-person market) love their eggs and poultry, and its emerging middle class, with its growing disposable income, is after better quality bread and other wheat-based products, which supports importing more milling wheat, she said.
India is stepping back into the import market and the Australian grain industry is the best logistically to capture that, French said.

She also predicted that prices for quality milling wheat would be bullish, particularly in six months' time.
The US is looking at a 27 million tonne carry-out which is a lot. There will also be a lot of quality issues across the various classes, particularly because it was so hot in the Pacific North West, elevating protein levels, she said.

"Hard red winter wheat protein quality is quite poor and our soft red winter wheat crop is very poor. Soft white wheat protein levels should be 9.5 to 10.5 per cent, but we have stuff coming in at 14 to 14.5 per cent protein," French added.
Wheat is the cereal with the greatest production in terms of area and value to the Australian economy. The majority of Australian wheat is sold overseas. Its major export markets are in the Asian and Middle East regions.