Egypt confirmed the purchase of 350kt of wheat on Wednesday. EU countries filling the void left by the limited grain offered out of the Black Sea, Egypt’s usual counterparty. Egypt had dangled the carrot in front of India but it appears that in the latest purchase Egypt shunned the Indian product in favour of EU wheat, this time around.
The news pushed nearby milling wheat futures at Paris higher, closing the session up €3.75 per tonne to €403 per tonne. Outer months were mixed, Dec22 a fraction higher, March a fraction lower. The business was said to have been completed at US$486.34 CFR, confirming world values are indeed staying very high. On the back of an envelope this value would equate to local prices here on the LPP well above AUD$450 per tonne.

As wheat values continue to flatten out at very high numbers we see Asian feed mills looking for not only alternative suppliers but alternative grains to feed. In the last USDA report Philippines feed wheat demand was reduced. The USDA expecting to see an increase in the use of feed barley to counter the current high wheat price. In their last purchase the Philippines paid around US$365 C&F for feed wheat. This Indian feed wheat is some US$30.00 under current trade offerings for Australian feed wheat. A rough conversion of the Indian value would indicate SFW1 here off the plains is worth about AUD$380. To see Aussie product offered there at US$400 does indicate that if needed Australian SFW1 could work into this market, against lower grade Indian wheat.

The 7day rainfall map shows some showers across the US SRWW and eastern spring wheat regions, canola country in Canada remaining mostly dry.