US markets traded sideways to a slightly firmer in overnight trade but not enough to counter the previous sessions loses. The sowing pace of US winter wheat crop, although a little behind the five year average, at 93% it is all but done. The crop rating for winter wheat also improved.  News that Pakistan are planning to export 500kt of milling wheat didn’t help the market. This business is seen by the trade as more of a grab for US dollars than selling off excess wheat stocks.

The Aussie dollar should help the equation a little today as it is back almost 1% day to day. The AUD appears to be weaker in sympathy with the falling US share market.  US retail sales were off in the last quarter, a trend I’m sure Australia will follow if how busy I’ve been is any indication.

A good test for the price of world barley will come on the back of sales data for the 200kt tender announced by Iran on Monday. In the last tender in April Iran picked up 130kt for US$241 / tonne.
Yesterday bids for feed barley FIS Kwinana WA were there at AUD$285. This bid would roll out to something like US$270 – US$280 CIF Iran. It would also equate to a value around $400 landed LPP end user. Still makes sorghum too cheap at AUD$335 XF LPP and comes on the back of a massive sell down in local barley values.