Expensive wheat is cooling imports from key buyer Pakistan

As countries around the world load up on wheat, there’s a sign that one significant importer is starting to be put off by surging prices.

Pakistan’s Economic Coordination Committee on Thursday recommended against buying more for the time being, given rising international prices and sufficient flour stockpiles, the information ministry said. That includes government-to-government deals and the nation opted against issuing a new tender for now.

With benchmark futures hitting the highest since 2012 after bad weather hurt harvests in key exporters, the market is watching for any evidence that the rally is curbing demand. So far, there’s little sign that high costs are deterring importers on a large scale. The United Nations this week lifted its outlook for world trade to a record as demand climbs in the Middle East.

Pakistan, typically self-sufficient in wheat, emerged as a sizable global importer last season after a poor harvest and has been active again this year. The International Grains Council estimates its purchases at 3 million tons in 2021-22. Results are still awaited from a tender by the country this week that sought 90,000 tons.