Last night’s sharp drop in US grain futures now places wheat technically close to neutral. It will be interesting to see if the punters can mop up the blood prior to the March contract rolling off the board or if they intend to push the nearby lower leading into the US spring.
Corn and soybean futures at Chicago also saw some downside, beans slipping 16.25c/bu on the nearby.
The markets traded lower on the back of the corona virus outbreak. Those products that were best served by technical selling were hit hardest. Lower than expected weekly wheat export inspection numbers out of the USA did no favours for wheat.

Saudi Arabia picked up 715kt of wheat at an average price of US$247.46 / tonne. Wheat was offered on an optional origin basis with point of origin left in the hands of the seller. The wheat is mostly hard grade with 12.5% protein but there is one cargo of 11% wheat also.
If you look at the highest priced offer of the parcel, roughly US$253 and convert it to an AUD port number it comes in around AUD$328 FOB. Currently we see H2 bid FIS port Geraldton at AUD$370, so it’s probably safe to assume Aussie wheat will not be used.  Aussie APW has been offered FOB WA at US$270 +/- a few dollars for months now.

Russia’s Volga Valley remains a little dry with about 50% of normal rainfall for this time of year falling over the last couple of weeks. The main wheat regions in Ukraine have seen some nice falls during the same time frame. Minimum temps have been well above normal.