Despite the strong first quarter, the FAS in a Nov. 29 report indicated that full year wheat imports for the 2016-17 marketing year remain unchanged from earlier forecasts of 3.6 million tonnes. A sharp slowdown in feed wheat imports is expected in the second half of the 2016-17 marketing year, the FAS said, as the government of Thailand in November implemented restrictions on imports of feed wheat.
Thailand’s feed wheat imports come mainly from Ukraine and Argentina.
The FAS noted in the report that Thailand’s domestic corn production is expected to “increase significantly” due to favorable weather conditions. Meanwhile, imports of milling wheat are expected to continue to trend upwards due to consumption growth of wheat-based foods, particularly for bread and instant noodle products, the FAS said.
Import demand for U.S. wheat is expected to increase to around 700,000 tonnes in 2016-17, which would be up 3% from 2015-16, the FAS said.