US soft red winter wheat futures at Chicago were helped higher on news that China had bought 440kt of US SRWW. The strength in soft wheat futures rolled through to a better close in both hard red winter wheat and spring wheat. Futures and cash were higher. PNW values also improving in line with better futures values. White wheat values out of the PNW were unchanged.
I refer back to my morning comments 6 days ago on the 28th when rumours of China wanting to roll deliveries of French wheat had the market thinking demand in China was waning. Was China simply talking their book, you can be the judge of that.
Over the last 5 days the nearby contract for SRWW at Chicago has rallied 61.5c/bu. At todays money that’s about AUD$34.17. During that same time frame local APW values have moved AUD$12.00. Resulting in a change in basis from +188c/bu on the 28th to +168c/bu yesterday. This is all while a large slice of NSW and Victorian wheat is downgraded by weather.

Algeria picked up 50kt of durum for Jan / Feb overnight. Algeria do not make their tender results public. The trade do speculate on value and volume though, as these numbers become available I’ll let you know.

StatsCanada put out their data last night. Durum production was pegged at 4.045mt. That’s not as small as the 2021 crop but you need to go back to 2010 to find a production year lower again. The major thing to take away from the numbers is the incredibly lower ending stocks. Turkey continue to take advantage of the good Italian demand, recent sales priced around US$380CiF. Looking at the world S&D one might think Turkey is too cheap.