Wheat commentary: Black Sea prices up as buying interest returns

After Monday’s spike, US futures headed in different directions on lower volumes and a lack of new fundamentals, while on the Black Sea prices firmed as bidding interest returned in earnest.

The Chicago and Kansas spread widened moderately, with March SRW down 0.4% and May down 0.3%, while March and May HRW were both up 0.2%.

The Euronext contract saw the front month gain 0.3% and the second month up 0.2% with the roll becoming more pronounced, as volume and open interest higher was higher on the May 2018 contract rather than March 2018 for the first time.

On the cash market, Black Sea milling wheat prices jumped in the cash market, with buyers finally returning to match rising offer levels which have been driven by a stronger ruble against the dollar and recent weather-related strain on port capacity which has delayed loadings.

A February-March bid for 12.5% protein milling wheat at $199/mt FOB Black Sea was $3-$4 above the most competitive levels last week, while the most competitive offer for the same position was at $200/mt.

The Agricensus spot assessment for Russian milling wheat jumped $4 to $199.25/mt FOB Novorossiysk on the back of higher bids, with a flat structure seen out into April where the most competitive offer is $199.50/mt FOB.

APW was up 25 cents to $239.75/mt FOB Western Australia, with the most competitive inland bid moderately higher at AUD 283/mt Tuesday as currency movement was limited.

Argentina prices remained unassessed, with the second day of Carnival keeping people out of the office.

Syrian state grain agency Hoboob is looking for 300,000 mt of milling wheat from either Russia, Romania, or Bulgaria for shipment from April-June.

Jordan cancelled another tender, its fourth stalled attempt to buy milling wheat since the start of the year, despite receiving offers from Ameropa, Cerealcom Dolj and CHS.