There was a holiday in the US last night so nothing out of the States to stir the pot this morning.

Egypt picked up 235kt of Black Sea wheat last week. This takes financial year purchases by Egypt to 3.41mt, roughly half a million tonnes more than this time last year. This will surprise many considering Egypt had a lot of trouble buying wheat when they dropped their ergot tolerance to zero percent, this turned around quickly though once the tolerance was adjusted back to where it was prior and aligned with world standards.
Prices averaged around US$200 C&F this time which would make FOB Black Sea prices almost US$10 higher than a couple of months ago and US$2.00 higher than the last tender thanks to higher wheat and freight values. The rally doesn’t compare to the latest surge in US domestic wheat futures that have been spurred on by speculation that the HRW crop is in poor shape and wheat acres have been slashed for the 2017 harvest.

Another surprise is the competitive natures of the UK wheat crop in export tenders. Algeria has picked up UK wheat and the weaker pound is helping the UK chew through wheat stocks quickly, some even speculate that carryover could be as low as 1.25mt in 2017.