The global wheat trade landscape is undergoing rapid restructuring, with elevated prices beginning to dampen Asian buyers’ procurement appetite. These trade fluctuations directly impact downstream supply stability and cost structures in the baking industry. As core baking raw materials, wheat and palm oil trade dynamics profoundly affect the smooth operation of the entire baking supply chain. These emerging changes and challenges in raw material trade have become central discussion topics at major Baking ingredient exhibitions, attracting enterprises across the baking industry value chain to gather, exchange insights, and explore solutions.




Previously, Asian flour mills re-entered the market after a two-month absence to urgently book wheat cargoes amid supply concerns triggered by surging prices. However, the sustained high-price environment has begun to backfire on demand, with Asian buyers' willingness to purchase visibly declining. A South Korean company abandoned procurement in a 65,000-ton feed wheat tender due to excessive prices, while Jordan also chose to stay on the sidelines at a 120,000-ton milling wheat tender before eventually issuing a new tender.

Currently, Asian buyers are caught in a dilemma of “fearing price rises if they don’t buy, and fearing price drops if they do.” Meanwhile, farmers and traders widely anticipate tightening global wheat supplies in six to eight months, leading to widespread inventory hoarding. Upstream sellers’ willingness to release stocks continues to strengthen, causing wheat spot market liquidity to tighten further and exacerbating uncertainty in trade markets.

Beyond wheat, the oils trade market is also facing significant adjustments. Malaysia raised its palm oil export duty to 10% in May, with a reference price of 4,521.89 ringgit per ton, placing it in the highest tax bracket. Compounding this, conflicting export data from ITS and AmSpec agencies is gradually reshaping the global vegetable oils trade landscape.

As a core raw material in baking, palm oil is widely used in producing shortening and margarine, making its trade volatility particularly consequential for the industry. In the short term, increased origin procurement costs are already being passed downstream to baking enterprises. For Chinese baking companies heavily reliant on imported palm oil, the cost pressures from this round of duty hikes and supply chain disruptions will concentrate in terminal procurement channels within the next one to two months, directly impacting both the cost and supply stability of baking raw materials.

Bakery China 2026 will continue to share more industry professional content with you, so please stay tuned!

Bakery China 2026, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China 2026 is the Asia Pacific’s leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry. It is the first-choice trade fair to enter China’s bakery market.

The 2026 ASEAN International Bakery Exhibition (Bakery ASEAN), will be held on August 27-29 at JIExpo (Jakarta, Indonesia), co-located with renowned WEPACK Indonesia, Cafe Show Indonesia held by Reed Exhibitions Group, is a premier trade event focusing on the bakery and related industries in ASEAN and global markets. the shows will be covering 20,000 square meters, expecting more than 500 exhibitors and 50,000 professional buyers including distributors, imports and exports, manufacturers, chain stores, supermarkets, convenient stores, hotels and cafes, etc. from not only the ASEAN but also the rest of the world.

Source:https://mp.weixin.qq.com/s/3nQxNZtVVSVqL8cnUeavHg?scene=27&from=industrynews&color_scheme=light