The next 7 days continues to look dry for much of the US and Canadian durum belt. Russia is expected to see some good falls across much of the winter wheat regions in central and southern Russia. The spring wheat regions around Kazakhstan may also see some very useful falls prior to the 10th. France is expected to become a bit wet in the south while the wheat regions to the NW will see light rain with heavier falls to the NE and across much of Germany. Argentina will see a dry week across the Pampas but Cordoba to the north should see some useful rain across the central districts.

Chinese feed merchants are reporting very high vomitoxin levels in their early wheat. This follows on from heavy rain across central China that created serious flooding and decimated many crops in early May. It’s probably too early to tell what additional demand this will have on global wheat supplies as China were pencilled in as having around 146mt of carry in stocks.

Cash bids for Dark Northern Spring Wheat out of the US Pacific North West continue to rise. June 2nd bids out of the PNW ports were up almost 13c/bu (AUD$6.00) overnight. At 893c/bu port for 14% it would roughly indicate that APH1 delivered Newcastle port, when using Japan as a destination, could be worth somewhere around AUD$380 even without a white wheat premium. Canadian values indicate APH1 could even be higher. Keep an eye on high grade wheat spreads over the next 4 – 8 weeks.