9/1/20 Prices

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The offers are in on the latest Egyptian wheat tender. Russia has beaten Ukraine past the post but not at and FOB level, Russia managed to be the lowest delivered price thanks to some cheap frieght. The Russian offer came in at US$245.50 C&F. Romanian wheat was also cheap at the delivered level while French wheat offered by Glencore came in at US$249.48 delivered, the dearest in the mix. In the end Egypt picked up 300kt split between Russia, Ukraine and Romania and paying around US$10 more than last time they came to market.

In the USA grain futures continue to fumble through technical trade leading into tomorrow night’s USDA report. There was also talk that Iran will not take further action against US bases for the time being.
The punters are tipping a reduction in both US and World wheat ending stocks in Friday’s report. Increased sales for the US and lower production out of Australia will be key features. Realistically it will be hard to see the USDA change numbers enough to make a huge difference though. There is some talk of reduced US wheat acres for this report.

China has suspended their plan to mandate the use of E10 petrol. A reduction in corn stocks appears to have triggered the decision. China also does not have the production capacity to produce enough ethanol to cover its demand and would have found itself importing ethanol. US suppliers are a little unhappy about this turn around as it was expected to be a feature in the Phase 1  trade deal.

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