US wheat futures were flat to lower in overnight trade.
Further north PDQ registered the average cash prices for grains ex farm SE
Saskatchewan were all lower, spring wheat, durum, barley and canola values all fell.
1CWAD13 durum for a December lift average a price of C$459.55 per tonne, falling
C$11.76 day to day and reducing the premium durum has held over spring wheat to
C$67.28 per tonne. Just a couple of weeks ago this spread have been well over C$100
per tonne. Cash bids for canola also fell away in line with both weaker ICE canola
futures and the lower close for US soybean futures at Chicago.
The US wheat market saw mixed signals as Egypt firstly initiated a tender for US wheat,
then cancelled, then re-issued an international tender, it appears this tender too was
then cancelled. US wheat was initially offered at $US395 FOB. A price the GASC thought
was too high, cancelling the tender. In their last tender GASC paid a lot more than that
for wheat out of the Black Sea.
The prospect of US wheat becoming much more expensive due to a firmer USD is
something the buyer will need to consider if Black Sea exports continue to be
restricted. The Russian gas line issue could be a major driver to the value of the USD in
the short to mid term. This may influence the value of Australian grain on the
international market, making an already very competitive product even more
competitive. There is talk that private deals into Egypt will be done for the supply of
wheat in the short term, away from GASC. If US wheat is involved in these trades
expect SRWW futures at Chicago to rally.
The current heat wave in Europe helped Paris milling wheat futures close higher, the
Dec22 contract up E3.25 by the close, to E327 / tonne.