In the US corn and soybean futures set contract lows as production numbers in the states continue to grow. Wheat futures found a little upside on the back of tightening world stocks.
With most of the US wheat crop now in the bin attention is being turned to the sowing pace of this winter’s wheat crop and global sales. The US winter wheat is going in nicely and with further rain expected across much of the US winter wheat belt in the coming week establishment is expected to be good. With sowing progress at 13% right in line with the 5 year average a few rain delays are not going to bother the market this early on.
A snapshot of world wheat prices shows most values flat to firmer. White wheat on offer out of the Pacific North West of the USA was priced at US$228 for our harvest period. This in theory would make export parity here around AUD$290 – $300 NTP equivalent, that’s about AUD$150 under current new crop bids for the Newcastle zone.
Syria picked up 200kt of Russian wheat at US$224.50 CIFFO. This would see Russian milling wheat offers at about US$209 FOB for 11.5% protein and about US$225 FOB for 12.5% protein.
The media has also once again attempted to run with the story of Russian export restrictions for later in the year.