US wheat futures found limited support from news on further subsidies to help combat the impact of the trade war with China. Technical buying was also a feature in wheat and corn while the soybean market was sold lower.

In France the combination of Co-Ops InVivo, Axereal and NatUp, to form an exporting alliance called Grains Overseas basically announces another major shakeup thanks to the development of stronger wheat marketing out of the Black Sea, i.e. Russia. The joint venture was said to have been initiated as an attempt to ensure Russian wheat stays out of the Algerian market. France relies a lot on Algerian wheat imports. Russia’s response was simple, “they can consolidate all they like, it won’t change a thing”.

Tenders out this week include Tunisia for 92,000 tonnes of soft milling wheat for Aug / Sept. Japan 114kt of US wheat, this is a mix of spring, hard and white wheat. Egypt picked up 300kt of Black Sea wheat. The cheapest part of that order was 60kt of Ukraine wheat at US$198.80 / tonne FOB. Values were generally around US$205 FOB with freight of about US$18 to get it to Egypt. So roughly US$223 C&F. This would represent a value somewhere around AUD$130 less than current new crop APW values.
Jordan issued a tender for 120kt of milling wheat. Taiwan also picked up 90kt of US wheat.