Even the major market wires seem to be struggling to keep a grasp on the current world markets. One headline today attributed the weaker US grain futures markets to the stronger US dollar and then a sentence later went on to mention that the US dollar was weaker along with many outside markets. Not exactly encouraging when you are trying to filter the news worth disseminating.

It appears that the biggest downward pressure on wheat futures came from the confirmation that Russia had sold wheat to Egypt cheaper than it had in the previous tender. Most of the punters had been placing bets that Russian wheat would continue to go up in price. What the punters didn’t realise that the continued weakness in the rubble had not only allowed the Russians to remain price competitive globally but it also saw Russia’s domestic prices move higher. If you were a Russian farmer you might be forgiven for thinking that US sanctions have actually been helping you.
Looking around the globe at world wheat offer values most ports are lower by US$2.00 to US$7.00 per tonne. Offers out of the PNW of America are hardest hit with a fall of US$9.00. The only ports to come out of the session in the black were the Western Australian ports which continue to benefit from strong demand from eastern Australia.
WA wheat is offered FOB at US$276, this would roughly come in at AUD$477 delivered Liverpool Plains consumer. Which was confirmed yesterday when business was done at roughly that level.