S.Korea picked up 31.6kt of wheat off the US and Canada overnight, according to some reports it was for various grades, generally higher. Considering S.Korea are also tendering for 45kt of Australian wheat one might consider it is a blending exercise. The average price for the N.American purchase was said to have been about AUD$410 CnF. This kind of value does tend to indicate that there is indeed a little fat to be had in the prime grade price here at the grower level in the Newcastle zone. Brisbane APH1 values though are relatively close to this in comparison.
Thailand picked up 54kt of the expected 106.3kt tender for feed wheat. The shipment for March delivery was said to have been booked by Cargill at US$274.50C&F. This would indicate that current SFW1 numbers into Newcastle port are roughly where they should be which from a speculative accumulation position is probably fair money. Upcountry NSW site bids at $238 LPP also appear pretty close to the mark when benchmarked against this sale. SFW1 at $238 upcountry LPP will also work into the local consumer market if executed by road.

Cash canola bids out of SW Saskatchewan also drifted lower in line with ICE futures. 1CWAD13 durum bids were flat with an average ex farm bid of C$296.96 for a Feb21 lift. On the back of an envelope this would equate to a delivered Newcastle port value of roughly $380, bang on yesterday’s cash bid for direct delivery into Newcastle Jan / Feb / March. The weak US dollar is a problem for those looking to price grain at present. Continued arguing in US congress over the COVID stimulus package is an issue, an issue unlikely to be resolved in 2020.