US wheat futures were flat to higher with soft red wheat at Chicago leading the way, up only 4c/bu it’s nothing to write home about but it does mean a week on week rise of about AUD$3.23 / tonne slightly better than the $1.00 rise we have seen locally. Hard wheat futures were up 2.5c/bu and MGEX spring wheat was actually back half a cent.
The spread between the HRW contract and the spring wheat contract is at 195c/bu or roughly AUD$93.50 / tonne. You may ask yourself why is out H2 – APH2 spread not similar, it’s only AUD$16 up here at the moment. The domestic market has pushed lower grade values up here higher. In the south, say at Coolamon we see the spread between H2 and APH2 is AUD$40 / tonne, still not quiet the spread you might expect to see considering where MGEX futures are. Possibly the drought in the US last summer has skewed their futures contract more towards a domestic price. Supplies of APH type wheat are actually not too bad globally.
Values for the Tunisian business done by tender last week are out. The durum is of the most interest and was procured as optional origin grain, meaning it can be supplied from any port available. Its price was 25,000 tonnes @ US$297.69 and another parcel from Casilla at US$295.65 C&F. These values equate to roughly $306 NTP NTL so we can only assume the grade was a lower quality offering. Also in the tender was 100kt of soft milling wheat at US$207 C&F and 50kt of feed barley.