Harvest Pressure Hits Wheat as Corn Strengthens & Beans

Key Moments:

Wheat: Global Prices Retreat Under Expanding Harvests

Wheat prices weakened broadly as harvests advanced in the Black Sea region, the United States and parts of Europe. Trade sources reported that many buyers delayed fresh purchases in anticipation of lower prices, although a steady flow of tender activity continued through the week.

Key Wheat Tender and Trade Activity

South Korea’s Major Feedmill Group secured 55,000-65,000 tonnes of feed wheat from ADM at $275.93 per tonne CFR Pyungtaek and Kunsan/Ulsan, plus a $1.50 per tonne second-port charge, for shipment on September 17-October 6 if sourced from the Black Sea.

In addition, South Korean millers represented by KOFMIA bought 100,000 tonnes of US milling wheat for October 15-December 10 shipment, covering several grades, along with 50,000 tonnes of Australian wheat for delivery between November 15 and December 15.

A buyer in the Philippines was reported to have purchased Australian feed wheat for September shipment, with price indications at around $263 per tonne FOB Western ports equivalent and just under $260 per tonne from other ports.

Saudi Arabia’s General Food Security Authority (GFSA) issued a tender for 655,000 tonnes of 12.5% protein milling wheat for September-October delivery to Red Sea ports, with the tender scheduled to close on July 6.

Australia: Weather Relief Triggers Selling

Australian wheat values extended their slide as last week’s widespread rainfall across most cropping regions, combined with forecasts for further precipitation in some states, eased concerns about dryness. According to trade sources, the improved weather prompted growers and traders to release stocks that had been held back as a safeguard against potential dryness in New South Wales and possible domestic supply needs.

Fastmarkets’ daily assessment for wheat 10.5% FOB Australia W APW dropped by $3 to $270 per tonne for August loading on Thursday. Wheat 9.5% FOB Australia W ASW also slipped, down by $1 to $266 per tonne in Western Australia.

Black Sea Wheat: Declines Slow Amid Early Harvest

In the Black Sea, wheat prices continued to soften but signs emerged late in the week that the market might be nearing a floor, according to some trade participants. Despite this tentative stabilization, buying remained limited as importers waited for clearer direction.

Russian export prices came under further pressure despite an ongoing fuel crisis, which so far had not translated into noticeable effects on export values. Additional weakness in the national currency contributed to the decline. Harvesting officially began in Russia and, despite running behind last year’s pace, early yields were reported to be up by 23% year on year.

EU Black Sea and Continental Europe: Bearish Tone Persists

In the EU Black Sea corridor, expectations for abundant supply and intensifying harvest pressure maintained a bearish tone.