Offers have finished being submitted for the Algerian durum tender and we should have some news on volume and price later today or tomorrow. The tender will be broken down into four shipment windows, First half November, second half November, first half December and second half December. The tender volume is for a nominal 50kt but it is not unusual for Algeria to by much more, often volume may exceed 500kt. The tender results will have a big impact on the short to mid term prospects for durum.
Overnight French values out of Port La Nouvelle were a smidge higher to US$292 DDP. This would equate to a price of roughly US$337 C&F Italy. This compares to the current Canadian market price which would equate to about US$336.38 C&F Italy, there’s not much between them. Current DR1 bids here would equate to something close to US$315 C&F Italy, throw a US$20 trade margin in there and we are pretty close to the mix.

US and European wheat futures gave back a little value last night, failing to carry strength forward on the back of multiple international tenders. Wheat is cheap and the consumer knows it, wheat is also plentiful and the consumer knows it. US cash wheat values out of the Pacific Northwest were generally AUD$1.00 to AUD$3.00 lower overnight when compared to yesterdays conversions. The stronger dollar exacerbating moves in an otherwise sideways market. International cash and futures for wheat continue to remain towards the lower end of analyst expectations. Likely to remain range bound until we see either some fundamental changes in Argentine or Aussie production, or the dollar decides whether we eat soup or steak next year.
Conditions across the major wheat production regions of Argentina have dried down, with little rain recorded across much of Santa Fe and Cordoba over the last fortnight. This isn’t a bad thing considering the flooding which occurred last month. The 7 days forecast shows showers are likely across the main wheat provinces of Argentina next week. One can’t help but think that Argentina has had close to a dream wheat season so far this year.