Commentary and Analysis
October 13, 2016 - APW was assessed down $2/mt day on day at $198/mt FOB WA October 13 for cargoes loading in 60-90 days.
The assessment was at a premium of 50 cents/mt to the price for January shipments, estimated at $197.50/mt, with indicative bids heard at $195/mt and offers at $200/mt.
October 13, 2016 - A trade for 30,000 mt of Australian Standard White to India was heard concluded October 12 at $216.50/mt CFR for second half January shipment, after two trades were reported earlier.
Philippine Import Group awarded its feed wheat buy tender October 12 for December 2016-February 2017 shipments to three trading houses; 50,000 mt for December 1-21 shipment at $186.50/mt CFR Philippine for Black Sea or European Union origin, 55,000 mt for December 23-January shipment of Black Sea, EU (exclude France and Denmark) or Australian (with additional 7% premium) origin at $185.50/mt CFR and Australia's lower blend of ASW at $199/mt CFR, traders said.
Selling indications October 13 for APW and ASW loading in January fell $2-$4/mt from the day before, reflecting a weaker US CBOT futures contracts and a weaker Australian dollar against the US dollar, traders said.
Moreover, a looming record harvest of 28.3 million mt, despite frost damage in Western Australia's wheat belt, was forecast in the latest report from the US Department of Agriculture, weighing down overall sentiment.
Next commentary: Russian deep sea wheat unchanged at $173/mt, Oct 12