Australian wheat price fell amid increased Ukrainian exports

Australian wheat prices plummeted as Ukraine offers were observed in Asian markets while the demand for spot cargoes declined.

The price of Platts Australia Premium White and Australia Standard White wheat declined by 5.20% to $360.00 per metric ton and 6.20% to $347.00 per metric ton, respectively.

It was reported that large buyers of Australian wheat such as Indonesia and the Philippines have been hesitant to purchase amid bearish sentiment and covered demand.

The latter nation’s San Miguel Corporation was seeking a cluster of feed grains including cord, feed wheat, and barley last week but it did not buy the wheat from Australia.

Instead, the company bought the grains from South America at under $340.00 per metric ton since the price of Australian wheat was higher at $370.00 per metric ton.

Meanwhile, the rainy season is lifting Australian farmers’ hopes of another bumper crop for the 2022/23 season. Some growers adjusted their forecasts above that of the US Department of Agriculture’s World Agricultural Supply and Demand Estimates report for this month released last August 12.

Based on the latest WASDE report, the USDA raised its 2022/23 estimates for wheat from 30 million metric ton to 33 million mt.

Overseas wheat output rivals

The South American spot offers for December shipments, which compete with Australia’s crop, are also anticipated to place a ceiling on the latter’s wheat prices.

For instance, 60,000 metric tons of Brazilian wheat with 12.00% protein for full December shipment was offered at $328.00 mt on August 20.

Meanwhile, the freight rates for a Panamax transport from Brazil to South Korea costs $49.00 per mt and a Supramax is at $51.00 per mt. This price is similar to the shipments of the same cargo to Southeast Asia.

Hence, this global competition led to a delay of shipments for Australian wheat.