The premium grade wheat futures contracts in the US made some good gains last night. The move in US futures dragging Canadian spring wheat values, both XF SE Saskatchewan and FOB Pacific Northwest closed higher. The day to day conversion comparison for PNW spring wheat is up roughly AUD$7.29/t this morning. The US HRWW conversion comparison is also firmer, up roughly AUD$9.25/t compared to yesterdays conversion.
Comparing H2 and HRWW into the Asian market shows that HRWW is now roughly US$16.64/t cheaper than H2. Asian customers that ordered coverage a week or three back are probably feeling pretty happy about their purchases about now. Especially if they locked their freight in prior to the kafuffle in the Straight of Hormuz.

As if serious drought across Northern NSW and S QLD is not bad enough for production prospects in Australia this year, parts of the northern wheat fields districts of Western Australia are now dealing with a mouse plague. The chance of Australia producing an average wheat crop in 2026 is quickly diminishing as mother nature reminds us who’s boss.

Algeria was said to have picked up about 400kt of Canadian CWAD3 durum by tender this week. Initially the trade had estimated values a little lower than expected but with the trade now suggesting the CWAD3 grade as the supply grade, the price tends to make more sense, and if anything indicates that current CWAD3 / DR3 values are indeed cheap.

Dry weather in the US is the key to the rally in US HRWW futures at present. Keep an eye on this, and the emerging dry in France.