Wheat futures in the US took a hit last night. The move was also reflected in lower values out of the PNW.
The move is a little exacerbated here today when converted into local currency, the stronger AUD coinciding with the fall, never a welcome combination. Locally we saw some cash bids not follow the conversion from US futures higher yesterday, thanks to the weaker AUD then. So potentially we could also see local values not follow the conversion lower today………. lol ……. I crack me up.
The move in wheat futures in the US reflects lower values across the board around the world. Paris milling wheat futures were lower, English feed wheat values were lower. The pressure coming predominately from the Black Sea and to some extent the desire of the EU to compete with the lower values for wheat out of Russia and Ukraine. Tough times ahead according to many wheat analyst. The move in international values is worth something between AUD$3.00 and AUD$8.00 downside today. The Chicago SRWW futures loss conversion is closer to AUD$10, when taking the AUD/USD into account.
There was talk that Turkey would offer more durum onto the international market in coming weeks. Until we see the tender offer this will remain either healthy speculation or someone talking their book. In the meantime we see both French and Canadian values for durum continue to drift lower. Canadian values are not getting smashed but it’s not uncommon to see daily reductions of a dollar or two on ex farm values out of SE Saskatchewan. Should also note that the spread between old crop and new crop 1CWAD13 there is still inverted and around C$50 lower for the new crop.
Sorghum values out of the Gulf tended to follow corn prices lower, shedding a dollar or two. Argentine sorghum values remain flat. At the C&F China level Australian sorghum remains the cheapest sorghum available to the Chinese market.

International markets will remain fixed on lower FOB grain values from the Black Sea and what China does once business there resumes next week.