All the action was in US wheat futures and Chicago soybeans. Wheat continued to push higher on all three US grades. Moves were a little sedated compared to last Fridays recovery but Minneapolis was a clear leader with double digit gains across all current crop contracts. Spring wheat cash numbers were also sharply higher, MGEX cash closing at 1123c/bu (AUD$550.75), +27.75c/bu (AUD$13.60).
Dark northern spring wheat out of the Pacific Northwest is priced at roughly US$424 FOB, a huge number, not as high as 10.5% white wheat though which is priced closer to US$450 FOB.
White wheat numbers around the world continue to indicate good support for current, or higher than current, values here as we move through harvest. Basis levels here for APW are poor though. This is a combination of two things. The drought in N-USA and Canada and the poor logistics currently being suffered right around the world.
The North American drought inflated their local prices and futures markets, as droughts do. So to expected local values here, while we are having two very good seasons, to be following US values closely is a little optimistic. The increase in shipping costs and the tightness of shipping capacity is also being pushed down the line, weighing on commodity prices. Both are key factors to the lower basis. The trick is to know what is good low basis and what is simply a poor price. This is what spawned the Global Price Conversion table below. The quick morning snap shot in the table is part of a much larger spreadsheet with many other locations. If you are interested in seeing more comparisons let me know. In time this will also be displayed as a chart.