Egypt picked up 120kt of wheat, the lowest being of Ukraine origin at US$210 FOB. Freight to Egypt is pencilled in at US$10.40 per tonne making it a delivered port price of roughly US$220.40. In order to compete into that market US wheat would need to be offered at US$196 FOB USA, currently FOB offers are closer to US$220. There were a number of offers against the tender, the highest being from Grain Export out of Russia for US$227.59 including frieght.
In the USA corn and soybean futures were firmer while wheat was lower. Soybeans found support from what is expected to be additional sales made to China. The USDA announced a sale of 130kt to China in the morning while Reuters reported that 3 cargos had been booked out of the PNW on Monday.
With wheat, was it simply another session of buy soybeans / sell wheat, or does the US need further reductions in values to buy business into Asia and the Middle East. As detailed above US wheat is still too expensive to work into Egypt but with Australia basically out of the Asian market until the beginning of next year one would think that the USA and Canada would have it pretty easy. Cash bids, or basis premiums at Kansas city rail were flat. Interesting to note that 13% protein is 150 over HRW futures, so roughly US$220.45 / tonne.
In SW Saskatchewan we see new crop durum values relatively flat, spring wheat was down over C$4.00 and canola was up a dollar.