Black Sea disruptions push Vietnam’s Golden Wheat toward costlier US supplies
Golden Wheat replaced four disrupted or delayed Black Sea wheat cargoes with supplies from Bulgaria and the United States. The Vietnamese buyer paid significantly more for US grain and expects elevated costs to feed through to flour prices.
Four Black Sea cargoes disrupted
Vietnamese flour producer and animal-feed importer Golden Wheat has replaced contracted Black Sea wheat with supplies from Bulgaria and the United States after traders said the original grain would not be shipped. According to Agrointel, citing Bloomberg and Latifundist.com, the company had contracted four cargoes from the region, equal to about one-fifth of its annual requirements.
The disruption followed an escalation of Russia’s war against Ukraine during the summer. Golden Wheat chief executive Thuy Vuong said the company was left highly exposed to the Black Sea crisis and remained in constant contact with sellers while monitoring vessel movements.
The company also reviewed its contractual terms and insurance costs. Its risk assessment extended beyond vessels leaving the Black Sea because ships carrying grain to Vietnam would subsequently have to pass through the Red Sea.
Bulgaria and the United States fill the gap
Golden Wheat replaced two cargoes with Bulgarian wheat. The vessels were redirected to load at Burgas, about 500 km along the coast from Odesa, according to the Ukrainian media account cited by Agrointel.
For another two cargoes that were missing or delayed, the company turned to US suppliers. American wheat cost Golden Wheat significantly more, and Vuong said prices had continued to rise. The available information does not specify the volumes, grades, contract values or additional freight and insurance charges for the replacement shipments.
One contractual position remains unresolved. Vuong said the seller had requested an extension of the delivery period to allow more time for conditions in Odesa to improve. The uncertainty illustrates the operational difficulty facing buyers that must keep mills supplied while contracted grain remains unavailable.
Importers widen their search
The changes extend beyond Vietnam. Ukrainian journalist Evghenia Tkachenko reported that Turkey and the United Arab Emirates were shifting toward the Baltic states, while Bangladesh was seeking grain in Romania and Argentina and buying small quantities from India. Buyers were also looking to Australia even though this year’s crop had not yet been harvested.
Alternative supply is constrained. Drought reduced wheat and corn yields in the United States, while heat waves affected European harvests. That combination limits the ability of other origins to replace Black Sea grain quickly and increases the importance of freight availability, insurance and delivery reliability alongside the headline price of wheat.
Higher costs threaten flour prices
Golden Wheat does not expect a rapid normalization. Vuong forecast that wheat prices would not return to normal levels until at least March, regardless of developments in the Black Sea. He also said an increase in prices for basic products, particularly flour, could not be avoided under these conditions.
For millers and feed importers, the episode shows that a lower-priced origin can become more expensive once non-delivery risk, vessel diversions and replacement purchases are considered. Golden Wheat secured alternative grain, but the switch divided the requirement between Bulgaria and the United States and exposed the company to higher US prices. Until Black Sea shipments become more predictable, buyers may need to retain a broader supplier base and accept a higher cost for dependable delivery.
