HAMBURG: Private buyers in Pakistan still need more wheat imports after a disappointing local harvest despite heavy purchases in recent months of mainly Russian and Ukrainian supplies, European traders said on Monday.
But a weakening exchange rate means Pakistan's importers are waiting for further wheat price falls before making purchases, traders said.
Traders said purchases of around 300,000 tonnes in the coming months are possible if prices and exchange rate movements permit.
"Purchase inquiries are being made for November and December shipment but deals in the short term will be difficult in view of the falling exchange rate in the past few days," one European trader said.
"I estimate Pakistan has bought around 780,000 tonnes of wheat for import so far this year for bulk and container shipment up to September/October/November 2014."
"I expect purchases this year to reach 1.1. million tonnes."
Pakistan's last reported purchase was of 55,000 tonnes from Russia/Ukraine at $260.50 a tonne c&f and $262.00 a tonne c&f, both for September shipment, traders said.
Ukrainian containerised wheat with 11.5 percent protein content was being offered for sale at $275 a tonne c&f Karachi against much lower purchase ideas of $265 to $266 a tonne c&f, traders said.
Delayed plantings caused by late cotton and sugar harvests coupled with lack of cash for fertiliser meant Pakistan had a disappointing harvest, which was up on the year but below rising local consumption, one trader said.
Traders estimated Pakistan's 2013/14 wheat crop at around 25 million tonnes against estimated local demand of about 27 million tonnes.
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