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LATEST NEWS
Commodities
US loses, India gives Canada lion's share
Posted online: Friday, June 30, 2006 at 1248 hours IST
 
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CHICAGO/WINNIPEG, MANITOBA, JUNE 30 :  Canada will supply nearly half of the 2.2 million tonnes of wheat that India bought for more than $400 million on Wednesday, U.S. grain exporters said on Thursday.

The rest of the grain will come from Europe, Russia and Argentina, traders said. Wheat from the United States, the world's top wheat exporter, was not in the running because of India's stringent quality specifications, traders said.

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About 1.02 million tonnes of Canadian wheat was expected to arrive in India between September and January, which will mark Canada's first sale to India in about 10 years, traders said.

Toepfer International will ship 720,000 tonnes of Canadian wheat and Archer Daniels Midland Co. will supply an additional 300,000 tonnes of Canadian wheat, U.S. wheat exporters said.

ADM will ship soft red winter wheat from eastern Canada, traders said.

At least some of Toepfer's wheat was expected to come from western Canada, in cooperation with the Canadian Wheat Board, the only organization allowed to export western Canadian wheat and barley. Western Canada produces mainly red spring wheat, while eastern Canada produces soft red wheat.

"I can confirm we made a significant sale (to India)," Canadian Wheat Board spokeswoman Maureen Fitzhenry said.

Fitzhenry did not say how much or what type of wheat the CWB sold to India, stating the wheat board preferred to let its customers reveal sale details.

The Canadian Wheat Board at times allows private accredited exporters to purchase wheat from its stocks for export.

Fitzhenry could not project if India would continue to buy from Canada, saying future business would depend on their crop production and demand.

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