US wheat, corn and soybean futures all closed in the green last night. The spread between December 2022 wheat contracts at Chicago for soft red winter wheat and hard red winter wheat is now around 74.75c/bu or just over AUD$38.00 per tonne. The spread between MGEX spring wheat and Chicago SRWW is just under AUD$65.00 per tonne. That’s a significant grade spread difference to what we are seeing locally on our new crop multi grade contracts. Currently the spread between APW and H2 (for those even offering a spread) is just AUD$5.00, the spread between APW and APH is closer to AUD$15.00. Potentially some good trade margin there if the US spreads are going to be reflected in international milling wheat values.
Paris milling wheat closed in the green, up E5.00 per tonne for the Dec 22 slot, settling the week at E407.75 / tonne (AUD$611.09).
New crop rapeseed at Paris was unchanged while Canadian canola futures at Winnipeg were back around C$4.50 in the Jan 23 slot.
Cash bids for milling wheat ex farm SE Saskatchewan were up over C$5.00 per tonne. Durum didn’t follow the milling wheat higher, remaining relatively flat at the farm gate level but still demanding a premium of C$19.00 per tonne to 1CWRS13.5 grade milling wheat.

French wheat and barley deteriorated further in this week’s crop condition report. Soft wheat now rated at 69% G/E, back 4% on last week. Yes, this isn’t as bad as the crop rating for Kansas winter wheat by any means but still a week on week decline will keep the fire under the world wheat markets. What is worth the mention is the 20 point reduction in the G/E rating has taken place over one month. A hot, dry May. French barley and durum wheat were both lower, durum rated at 67% G/E.
Italy is expected to produce 60-65% of its domestic durum demand this year. Currently we see French durum priced at roughly US$585 C&F Italy.