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US wheat futures dropped for a third day on Friday May 9 on forecasts of continuing rain in prime growing areas in the center of the country.
Market participants are awaiting the release of the USDA’s May update to its World Agricultural Supply and Demand Estimates report on Monday May 12.
By 1pm US Eastern time, the Chicago SRW July futures contract on the Chicago Board of Trade dropped by 6 cents per bushel to $5.23 per bu, and the September contract slipped by 6 cents per bu to $5.38 per bu.
The Kansas hard red winter (HRW) July futures contract decreased by 5 cents per bu to $5.19 per bu, and the September contract fell by 5 cents per bu to $5.33 per bu.
The Minneapolis hard red spring (HRS) July futures contract fell by 6 cents per bu to $5.94 per bu, and the September futures contract dipped by 5 cents per bu to $6.07 per bu.
The September French milling wheat contract on Euronext rose by €0.25 per tonne to €202.75 ($228.24) per tonne by 6:30pm Central European time, while the December contract climbed by €0.25 per tonne to €212.25 per tonne.
In cash markets, Taiwan’s Flour Milling Association (FMA) booked 99,200 tonnes of milling wheat of US origin in two consignments in a tender that closed on Thursday May 8, sources have told Fastmarkets.
The first consignment is for shipment between July 4 and July 18, while the second is for shipping between July 22 and August 5.
In Australia, the market was stable, as the focus was still not on the trade but on the planting progress, given that weather remains a concern in many producing areas.
As indications, the Australian premium white wheat (APW) was offered around $258-259 per tonne FOB Western Australia for June-July loading.
In the Black Sea market, old crop wheat prices were generally stable, while new crop selling ideas dropped, and trade sources said that some trades were signed during the week for Southeast Asian destinations.
For old crop, selling ideas for Russian 12.5% wheat were heard around $255-258 per tonne for June loading FOB Novorossiysk-Taman-Tuapse-Kavkaz (NTTK) versus bids at $249 per tonne FOB NTTK.
New crop selling ideas for 12.5% wheat were heard at $232-235 per tonne FOB NTTK, with bids at $224-225 per tonne FOB NTTK for July-August loading.
New crop Russian 11.5% wheat was offered around $230-232 per tonne FOB, but given the selling ideas for Russian/Ukrainian 11.5% wheat into Indonesia/Vietnam at $259-262 per tonne, the FOB equivalents from that are standing below $230 per tonne FOB.
A deal was rumored for Russian 11.5% wheat into Indonesia at $256-257 per tonne CFR, equivalent to around $226-228 per tonne.
Ukrainian new crop feed wheat was also heard offered into Southeast Asia around $249-252 per tonne CFR, equivalent to $217-218 per tonne FOB. This corresponds to prices heard on an FOB basis for July-August loading at $218-220 per tonne.
For old crop Ukrainian wheat, offers for 11.5% wheat were stable at $242-243 per tonne FOB Pivdennyi-Odesa-Chornomorsk (POC) for May-June loading, with bids heard at $238-239 per tonne FOB POC for the same period.
Selling ideas into destinations for Ukrainian 11.5% wheat were heard at $255 per tonne CFR Egypt and at $265 per tonne CIF Algeria.
In the EU Black Sea, bids for 11.5% wheat on an FOB Constanta-Varna-Burgas (CVB) basis were indicated at €2-3 per tonne, while no sellers were present on the market.
New crop offers of 11.5% wheat were indicated at a discount of €5.50 per tonne to the September Euronext wheat contract for July and August loading dates, while bids were at a discount of €7.50 per tonne on the same basis.
12.5% wheat on an FOB CVB basis was offered at a premium of €15.50 per tonne over the September Euronext wheat contract for June loading, while no bids or trades were reported.
New crop 12.5% wheat FOB cargoes loading at CVB ports in August were offered at a premium of €2 per tonne over the September Euronext wheat contract.
In Europe, trading was muted, while the low availability of wheat stocks in other northern European markets limited activity, with no bids or offers heard.
In April, milling wheat exports from Rouen totaled 252,400 tonnes, while in the previous marketing year, April exports reached 415,800 tonnes.
So far in May, milling wheat exports have totaled 81,500 tonnes, versus 330,800 tonnes exported in May in the previous marketing year.
The German 12.5% FOB wheat APM for June loading was assessed at a premium of €15 per tonne over the September Euronext contract, with no indications received to disprove the previous assessment. No data was excluded.
The 11% FOB US Gulf HRW front-month premiums were unchanged, with June at 95 cents per bu over the July Kansas HRW futures contract and July at 88 cents per bu over the same underlying contract.
The 10.5% FOB US Gulf SRW premiums were steady, with June 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 declined by $1.50 per tonne to $227 per tonne, and the July assessment decreased by $1.50 per tonne to $225.25 per tonne.
In Canada, wheat exports fell by 41,500 tonnes to 512,800 tonnes during the week to May 4, according to data released by the Canadian Grain Commission on Friday. Year-to-date wheat exports reached 16.29 million tonnes, slightly above 16.01 million tonnes a year earlier.
Canadian durum wheat exports dropped by 75,600 tonnes to 197,500 tonnes in the week to May 4. Cumulative durum exports reached 4.48 million tonnes, up by 1.77 million tonnes, or 66%, from 2.70 million tonnes the preceding year.
Canada western red spring 13.5% FOB Vancouver front-month premiums were steady, with June at $1.40 per bu over the July CBOT futures contract and July at $1.40 per bu over the same futures contract.
Canadian durum prices were unchanged, with 14.5% wheat FOB Vancouver cargoes at $300 per tonne and FOB St. Lawrence cargoes at $315 per tonne.
In Argentina, June offers decreased by $1 per tonne to $232 per tonne, with bids up by $2 per tonne to $227 per tonne.
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