Wheat prices rise $5/mt in Black Sea after tenders

Wheat prices in the Black Sea and Azov region rose sharply Thursday, after several tenders over the past few days and short covering, brokers and traders told Agricensus.

Russian wheat selling ideas for September loading climbed by around $5/mt in one day to $210/mt FOB NTT, while bids also increased by the same amount to $205/mt FOB.

Meanwhile, bids for October loading increased to $210/mt FOB NTT while offers disappeared.

In Ukraine, selling ideas for 11.5% loading in September were up $3-4/mt from Wednesday's levels to $211/mt FOB PIPP against bids at around $208/mt FOB PIPP.

"In general, this is always the case. When tenders come out and a big amount is bought, there are no aggressive offers left in the market. And this time it also coincided with there being short positions for September, and they all came out to the market after tenders," a trader said.

The Azov shallow-water market followed the trend, with a deal for September loading 13.5% completed after the TMO tender results at $211/mt CIF Marmara, which is an increase of $5/mt than the best bids before that tender.

Thursday’s best bids were already at $211/mt CIF Marmara against offers at $213-214/mt.

Three key wheat buyers in the Middle East - Egypt’s GASC, Turkey’s TMO and Jordan’s MIT - held tenders in which they collectively bought around 1 million mt of wheat over two days, all for September-October delivery.