US wheat futures and cash markets were firmer, aided greatly by the falling US dollar. Cash offers for US HRWW out of the Pacific Northwest closed the day valued at roughly US$234 FOB. The day to day conversion increasing roughly AUD$2.68/t.
We can use this value to determine a rough C&F value for milling wheat into the Asian market and then use that value to bench mark our current values here on the LPP. US HRWW C&F Japan comes in close to US$263/t. This compares to a H2 grower bid here, converted to a C&F Japan number, that is closer to US$276. This isn’t a perfect comparison though, white wheat vs red wheat.
If we do the same comparison using US Club White Wheat (10.5% prot) out of the Pacific Northwest it comes out something closer to US$269 vs H2 at US$276, a little closer but still showing US white wheat is cheap into the Asian market. If you consider the discount from H2 to APW1 this is spread much closer.
Argentina is also very competitive with wheat at present. The same comparison shows 12% milling wheat from Argentina landing in Asia at something close to US$266 per tonne, competing with the US HRWW product.
Cash values out of the Black Sea were generally flat in origin currency. Once you convert to an Asian consumer and then back to an equivalent AUD price here we see that the AUD isn’t helping us much today. Compared to yesterday this conversion shows that Russian milling wheat is now AUD$2.67/t cheaper.

The AUD found strength not only from a weaker USD but also from our friends at the RBA. Like the US, the RBA, is also fitting into the old saying, who needs enemies when you have friends like the RBA. After the RBA’s Dep Gov Hauser stated yesterday that the current inflation rate is still too high. The market took it on board and is factoring in a 72% chance of another rate hike in May and possibly another in August.
The AUD was sharply higher against a bunch of currencies, including the Indian Rs.