US wheat futures were lower on a night featuring further technical trade as US exports continue to lag.
IKAR reduced the Russian wheat crop estimate from 69.6mt to 69.2mt, this is in stark contrast to what the USDA done only a week or so back when they surprised the market and increased their estimate for Russian wheat production from 68mt to 71mt.
Australian wheat traded at US$280 C&F Thailand with a 50kt parcel being booked for Dec – Jan delivery. Export sales from Australia are very slow this year with this sale being one of the first forward sales of the season. Traditionally Australia would have upwards of 3mt of new crop wheat sold by this time of year.
Australian offer values continued to firm throughout the week and are closer to US$295 C&F SE Asia or roughly US$283 FOB west coast port for APW. The slow pace of sales outlines the trades desire to move west coast wheat to the east coast consumer as eastern crops fail from drought and frost damage.
It’s also interesting to note an increase in uptake of Chinese wheat coming out in auction. Over 250kt of wheat was placed in yesterday’s tender and volume has been creeping up in recent days. With harvest all but complete in China one might think that wheat supply would be ample and domestic auctions of Government stock might not be well supported. Corn auction sales have been disappointing though.