Wheat commentary: Stronger ruble sees Russian wheat over $200

A weaker dollar saw Black Sea cash markets higher, with Russian milling wheat breaching the $200/mt mark and continuing its recent rally.

Spreads moved slightly on US futures which fell despite a weaker dollar, with March SRW down 1.1% and May down 0.9% and March HRW down 0.9% and May down 1%.

European futures, meanwhile, dropped 0.8% on the front month and 0.9% on the second.

Inland APW bids in Kwinana were down AUD1 overnight to AUD 282/mt, with the FOB cost assessed by Agricensus as being equivalent to $238.75/mt FOB Western Australia – $1 lower on the day.

On the Black Sea, the bid and offer range remained tight as Russian March 12.5% protein wheat was bid at $200/mt FOB for spot and offered for April at $201/mt FOB.

With the ruble surging almost 1% against the dollar on the back of higher oil prices, the Agricensus Russian milling wheat assessment increased $1.50 on the day to $200.75/mt FOB Novorossiysk.

A stronger hryvnia against the dollar saw the Agricensus Black Sea feed wheat price gain $1 overnight, taking it to $187.75/mt FOB Ukraine – its highest level since being launched.

Argentina was back in the office and issued 95,606 mt of export licences to wheat sellers, while buying interest for spot positions re-emerged at $177/mt FOB against an offer held at $188/mt FOB.

Not for the first time, the peso managed to avoid the strengthening seen in many other currencies Wednesday, with the bid and offer range moving the market $2 lower to $181.50/mt FOB Up River.