Jordan picked up 60kt of milling wheat at government tender last night. Jordan, like Algeria, keeps market tender results private, but there are a number of trade estimates out there suggesting CHS was the successful seller at US$262.50 per tonne C&F for second half of Feb delivery. On the back of an envelope this might work back to something close to AUD$290 +/- XF LPP equivalent. The last public bid I saw for H2 wheat into the Newcastle port was about AUD$355, so roughly equivalent to AUD$315 XF LPP. We should have the result of the Jordon tender for 120kt of feed barley tonight.
Algeria are in for durum by tender. The tender asks for offers on 50kt for Nov / Dec. Algeria often buys in multiples of 50kt, sometimes buying much more than 50kt. With delivery asking for Nov / first half Dec Aussie product may not suit this window.
Saudi Arabia picked up 455kt of milling wheat on Friday. It appears Bunge, Cargill and Solaris are the main suppliers at a value of roughly US$262.86 to US$265.39 depending on discharge port for delivery in Dec / Jan. This is very close to the same value as the Jordanian business. A second Saudi tender for 500kt of milling wheat for delivery during April is also due through tonight. There’s a good chance Aussie wheat will feature in this tender.
Two tenders close to each other, are they bottom picking. As stated before the current level of basis here vs Chicago is high, maybe even a basis sell. If US futures can rally from here, allowing basis profit to be derived from a Chicago hedge, and during that process cash prices also improve, with lower basis, we might just see a win for traders and a win growers leading into Dec / Jan / Feb, or am I just dreaming again, time will tell.
S.Korea are looking for 50kt of US milling wheat and 45kt of Canadian milling wheat, we should have the results to that tender tonight along with the Algerian durum tender results.
Tunisian milling wheat tender results last week were just US$1.28/tonne lower than their early September tender results.
Wheat appears to be flat, if not bottoming out.