Market News: Asian buyers have ordered several shipments of Australian feed wheat as the prospects for extending the Black Sea Grain Initiative look increasingly uncertain, sources said, oilworld.ru reports citing S&P Global Platts.
The Philippines and South Korea purchased at least four batches of feed wheat in total.
A Philippine import group has ordered three shipments of 50,000 tons each of Australian feed wheat for January-February shipments from ETG and CBH at around $340 per ton CFR on 13 October. details were not available.
South Korea’s Major Feedmill Group has ordered 65,000 tonnes of feed wheat from CJ for shipment from Feb. 7 to March 17 at $354.49 per ton, including a second port premium.
The 120-day UN-brokered Black Sea Grain Initiative will end on Nov. 19, and the market is unsure of an extension given rising tensions.
Without the prospect of exporting wheat from Ukraine, buyers are turning to supplies from Australia.
Philippine feed wheat trades close to and even cheaper than corn, sources say.
Platts, part of S&P Global Commodity Insights, valued Jan-Feb corn at $348.50 per tonne CFR NE Asia on 13 October.
The sources added that forward curve corn shipped to North Asia is valued at least $5-$10 a tonne higher than spot markets due to a bullish supply shortage.
US corn production has been hit by lower yields, and low water levels in the Mississippi will delay US corn from reaching export markets.
According to the Rosario Grain Exchange, corn planting in Argentina has been the slowest in just 10 years due to high temperatures.
With only two weeks left before the closing of the corn early planting window, corn plantings in Argentina accounted for 16.4% of the total projected area of 7.5 million hectares for 2022-23 (March-February) as of October 12 compared to October 23. .2% a year earlier. a year ago.
After another week without sufficient rainfall, some of the originally planned early planting corn fields may be excluded from the current production run, BAGE said in a report.
China is also preparing to start importing Brazilian corn due to the lack of exports from Ukraine.
An inverted spread from feed wheat to corn could cause feed buyers to switch from corn to feed wheat.
Australia’s wheat harvest has just begun and the country is expecting another bumper crop, although protein quality is expected to be compromised by higher-than-average rainfall, especially in the southern and eastern regions.
The market expects an increase in the volume of lower quality wheat, which should be used in the production of animal feed.
Sources said logistics could be a problem as January slots for Australian exports are limited, pushing up prices, oilworld.ru reports citing S&P Global Platts.
Loads of feed wheat for February shipment were already heard higher at around $360/t CFR on October 14 after a flurry of trading.