Exports of wheat from the globe's third-largest shipper of the grain are forecast to climb 13 percent for the 2013-2014 harvest, according to Bloomberg.
Increased supplies from Australia as the year proceeds might prompt competition amongst exporters to intensify. The United Nations forecasts global production this year will amount to the second-highest since records were kept, and the total is enhanced by recovery regions of Europe.
"Farmers are looking at the relative value globally," marketing head Tom Puddy with the largest handler of grain in Australia told Bloomberg in Singapore on Tuesday, noting that production is forecast to grow to 24 million tons after having notched 21.5 million tons. "Wheat prices came off over the past month, but the farmers' returns are still reasonable."
At 12:05 p.m. on Wednesday, wheat futures edged down 0.11 percent, a 0.005-cent loss to $7.0275 per bushel.
Reuters reports Iran, under sanction from the U.S. and European nations due to the questionable nature of its nuclear program ambitions, is seeking to purchase more than 121,000 tons of milling wheat from the U.S.
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