S.Korea confirmed the purchase of 86.2kt of US milling wheat yesterday. There is talk the sale also included 50kt of Aussie milling wheat.
The first US consignment was a mixed consignment of 12.2kt of soft white wheat @ US$244.03 / tonne FOB, 11.5kt of HRWW @ US$273.45 and 12.5kt of DNS 14% wheat @ US$302.76 per tonne.
On the back of an envelope the HRWW value is roughly equivalent to an ex farm LPP price of something close to AUD$360 – AUD$370. Which when considering trade margins and other costs does compare to current H2 bids (XF basis) for direct delivery to the port. It does tend to make current H2 bids on the local track market look exceptionally cheap though.

US wheat futures markets found some strength. There’s hard to find anything from a fundamental perspective to support this rally. International demand has been limited. It could potentially be coming from the expected warmer weather to hit the USA. Daily high’s are expected to push into the low 20’sC for the southern Plains. With western Kansas and much of Nebraska still very dry, warm weather now is not ideal, especially if it’s followed up by another cold snap. Export values out of the Pacific Northwest followed futures higher. Hard red winter wheat and white wheat now valued at similar levels FOB.

Farmers across Europe continue to rally against the EU agricultural polices. Tractors are blocking highways across Italy, France, Netherlands, Germany and many more. The protests are said to be more than just anger against a fuel subsidy removal. They are directed at unworkable restrictions dressed up as environmental protection, a wolf in sheep’s clothing. Some have even considered these pressures a constructed land grab by the ruling class.