US cash and futures for wheat saw a little downside overnight. Hard red winter wheat 11.5% out of the Pacific Northwest was roughly AUD$3.80/t cheaper when compared to yesterdays conversion from FOB US to, C&F Asian consumer, to XF LPP equivalent. US White wheat was relatively unchanged and higher grade spring wheat was lower by about AUD$2.76/t using the same type of comparison.
Milling wheat out of the Black Sea was +/- less than half an Aussie dollar, and French milling wheat was a smidge lower. Argie -AUD$0.71/t.

The world continues to cough and choke on the smoke (screen) being generated out of Iran. Boats are failing to move through the Straight of Hormuz for a few reasons. GPS jamming is an issue, Iran continue to block navigation aids. Insurance, Lloyd’s of London appear to be struggling to renegotiate insurance estimates at a pace / value acceptable to many. This has seen Trump announce the US will provide shipping insurance if needed. I have no idea if that’s worth the paper it’s written on but no doubt it’ll get tested soon. The thought one might get a missile launched into the side of your boat is probably a deterrent that shouldn’t be overlooked too, regardless of insurance. All these things are inflationary, apparently.

The odds are now the funds of no longer short US wheat futures. According to the latest CFTC report, as of the 24th of Feb funds were holding a net short position of just 17.3k contracts (2.35mt) in futures and options. This is a huge turnaround since the beginning of February. More importantly it is the first time we’ve seen the funds happy to “square up” in the spring for a few years.
US weekly export inspections, loadings, for wheat came in at 344kt for the week ending 26th Feb, bang in the middle of trade estimates. Corn continues to exceed expectations with weekly loadings of US corn confirmed at 1.859mt. Corn now seeing loadings at 45% more than this time last year.