Southeast Asian nations are altering global grains and oilseed trade flows with increased U.S. agricultural purchases. Indonesia, Bangladesh, Vietnam, the Philippines, and Thailand are set to boost feed grain purchases under trade deals, displacing Australian, Canadian, and Russian supply. U.S. farm exports are gaining ground in Asia due to lower prices of wheat, corn, and soymeal compared to rival exporters.

Asia, a net food importer, is a crucial market for global suppliers, with about 30% of world wheat, corn, and soymeal imports coming from the region. An influx of U.S. crops could impact prices for competitors and increase shipping costs due to greater distances. Over the past decade, Black Sea and South American suppliers have gained ground in Asia, reducing U.S. market share.

Indonesian flour millers have purchased 250,000 metric tons of U.S. wheat since July, with an agreement to buy 1 million tons annually. Australia, a major wheat supplier to Indonesia, could lose several hundred thousand tons in sales. Vietnam is likely to import U.S. wheat, corn, and soymeal, with agreements in place to purchase $2 billion of U.S. farm produce.

Thailand and the Philippines may become key importers of U.S. corn, replacing current purchases from the Black Sea and Asia. Thai finance minister announced plans to import up to 2 million tons of U.S. soybeans. U.S. agriculture products are price competitive, with U.S. soft white wheat offered at $280 per ton, U.S. corn $10-$15 cheaper than South American products, and U.S. soymeal at a $5 discount to rivals.

Read more at Yahoo Finance: Analysis-Asia’s pledge to boost US farm imports may redraw trade flows