By 1pm US Eastern time, the Chicago soft red winter (SRW) July futures contract on the Chicago Board of Trade (CBOT) increased by 2 cents per bu to $5.32 per bushel. The September contract was up by 1 cent per bu to $5.47 per bu.
The Kansas HRW July futures contract increased by 5 cents per bu to $5.31 per bu. The September contract rose by 5 cents per bu to $5.45 per bu.
The Minneapolis HRS July futures contract was up by 8 cents per bu to $6.11 per bu. And lastly, the September futures contract was also up by 9 cents per bu to $6.23 per bu.
European wheat markets respond to investor activity and tariff impacts
The September French milling wheat contract on Euronext increased by €0.50 per tonne to €202.25 ($230) per tonne by 6:30pm Central European time. This occurred while the December contract rose by €0.75 per tonne to €213.50 per tonne.
Euronext’s commitment of traders’ report showed investors reducing the size of their short positions on wheat futures in the week ending May 23. This led to an 11% contraction in the net short position to 230,892 lots.
Australian wheat offers face competitive pressure from Black Sea supply
Australian premium white (APW) offers for July-August shipment to major Southeast Asia ports were in the high $270s CFR for container shipments. Australia standard white (ASW) offers were also heard at low $270s CFR for the same period.
Some ASW in containers for July-August shipment was also heard traded around $277 per tonne CFR Jakarta the previous day. Although, one Indonesian buyer noted that overall buying interest was low due to more competitive Black Sea wheat being available.
Russian and Ukrainian wheat prices reflect regional trade dynamics
In Russia, offers for old crop 12.5% wheat were reported into Egypt at $257 per tonne on a CIF basis, along with bids at $253 per tonne on the same basis and same destination.
For the new crop, July-August loading 12.5% wheat buying ideas were heard at $220 per tonne FOB Novorossiysk-Tuapse-Taman (NTT).
Russian new crop 11.5% wheat bids were heard at $215 per tonne FOB NTT for July shipment.
In Ukraine, selling ideas for old crop 11.5% wheat were heard at $241 per tonne on an FOB Pivdennyi-Odesa-Chornomorsk (POC) basis for June loading. Some offers for old crop to Egypt were heard at $255-$257 per tonne on a CIF basis.
New crop buying ideas for Ukrainian 11.5% wheat were heard at $215-219 per tonne FOB POC for July shipment. August loading offers were reported at $223-231 per tonne FOB POC. Buying ideas were at $215 per tonne FOB POC for August-September loading dates.
New-crop feed wheat offers were heard at $214-217 per tonne FOB POC for July-August loading. Bids were also heard at $211 per tonne FOB POC.
Some buying ideas into Thailand or northern Vietnam were reported at $245 per tonne. This was on a CIF basis for July loading dates.
Black Sea and European wheat trading overview
In the EU Black Sea, new crop offers of 11.5% wheat were indicated at a €3-4 per tonne discount to the September Euronext wheat contract for July and August loading dates.
Some offers for new crop 12.5% wheat cargoes were heard €1-2 per tonne above the September Euronext wheat contract for July and August loading dates. No trades were reported.
Feed wheat bids were indicated at €15 per tonne discounts to the September Euronext wheat contract for July loading dates.
In Europe, Polish market participants said new crop ideas were at a standstill. Farmers in the country were unhappy with current market levels for milling wheat.
Last offers in Poland for August loading 12.5% wheat cargoes on an FOB Gdansk basis were indicated €1-2 per tonne below the December Euronext wheat contract.
FOB offers and pricing trends in North and South America
French old crop 11% wheat was offered for June loading dates on an FOB basis. And at parity to the Euronext September wheat contract, with no trades reported.
French July and August 11% wheat cargoes offered FOB were €2 and €3 per tonne above the September Euronext wheat contract.
The German 12.5% FOB wheat APM for July loading was assessed €23 per tonne above the September Euronext contract. There were no indications received to disprove the previous assessment. No data was excluded.
The US weekly export sales report was delayed until Friday May 30 because of the Memorial Day holiday on Monday May 26.
The 11% FOB US Gulf HRW front-month premiums were steady. June and July remained unchanged at $1.05 per bu over the July Kansas HRW futures contract.
The 10.5% FOB US Gulf SRW premiums were also unchanged. June was at 65 cents per bu over July Chicago SRW futures and July at 60 cents per bu over the July contract.
The 10% FOB Pacific Northwest soft white price assessment for June increased by $1 per tonne to $236 per tonne, and the July assessment rose by the same amount also to $236 per tonne.
Canada western red spring 13.5% FOB Vancouver front-month premiums were unchanged. June and July were both at $1.80 per bu over the July CBOT futures contract.
Canadian durum prices were flat, with 14.5% wheat FOB Vancouver cargoes at $305 per tonne and FOB St Lawrence cargoes at $320 per tonne.
In Argentina, June offers climbed by $3 per tonne to $233 per tonne. July offers rose by $2 per tonne to $232 per tonne. Bids decreased by $4 per tonne to $226 per tonne.
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