Wheat: Prices turn to gains

Global wheat prices partially recouped losses from the start of the week, reflecting demand recovery in the past days and the sharp upward trend on the exchanges.

Russia's spot 12.5pc protein content wheat contract turned to gains, rising by $1.50/t on the day to $377.50/t — after falling by $10/t on Monday. Interest for Russian product remained low compared with other origins, with buyers avoiding submitting public bids for Russian product in view of heightened insurance risks for shipments from the origin.

Offers for Argentinian 11.5pc wheat on an fob upriver basis were also heard higher on Tuesday at $375/t for April shipment and $380/t for May shipment contracts, compared with $370/t for April on Monday.

Argentinian wheat prices — and other origins — could see support in the coming months from Argentinian grain workers' strike, scheduled to start next Monday, as reduced arrivals to ports could slow the country's busy line-up in the first half of April.

Meanwhile, some buying interest was heard for new-crop Argentinian 11.5pc wheat for December-January shipment on an fob upriver basis. And demand was also heard for Brazilian 12.5pc wheat for December shipment of a Panamax-sized vessel.

On the European side, bids were heard for Romanian 11.5pc wheat at $390/t fob Constanta for shipment in the second half of April. Offers for Bulgarian 11.5pc wheat were heard lower on Tuesday at $400/t fob Constanta/Varna/Burgas (cvb), some $10-15/t below last Friday's levels.

Some trading interest was also heard for European new crop wheat for July-September shipment contracts. Bids were heard for Romanian 11.5pc wheat at a €3/t discount to the Euronext milling wheat September futures contract ($373/t) on an fob cvb basis for shipment in July. On the seller side, offers were heard for European 11.5pc wheat at €5/t over the Euronext September futures contract ($382/t) on an fob cvb basis for August-September shipment.

The cash and futures markets were not seen to take immediate direction from the EU Commission's expectations of record wheat exports from the bloc in 2022-23. The Commission pegged EU-27 exports at 40mn t for next season, up from 33mn t estimated for this year and nearly 3.5mn t above the previous record, reflecting stronger domestic supply and weaker consumption, paired with high international demand.

Canada

Canadian Western Red Spring (CWRS) wheat prices made gains on Tuesday, following the sharp upward trend on the Minneapolis Grain Exchange (MGEX) and higher premiums.

The 13.5pc protein grade wheat prices moved up by $11.25/t to settle at $449.75/t fob Vancouver. The MGEX May contract was up by ¢19.2/bu on the day at the time of writing. Widening differentials further supported gains, with spot premiums to the MGEX May contract heard ¢7/bu higher at ¢120/bu.

Canadian wheat exports in the last week were again low, reaching 171,300t and bringing total exports to 7.6mn t for the marketing year. This was 41pc behind year-ago levels.

But farmer sales were heard to pick up on Tuesday, as the MGEX May contract crossed the ¢1100/bu threshold. Farmer sales were focused on new-crop, limiting the upward trend at the near-end of the curve.

Meanwhile, Japan returned to the market after a two-week break, issuing a wheat tender for shipment from 1-30 June from the US and Canada and 1-31 August from Australia. Some 59,000t was sought from Canada in the tender due to close on 7 April.