BAGHDAD: Iraq was offered Australian wheat as low as $306 per tonne, on a cost and freight basis, with other 50,000-tonne cargos from the origin priced at $309.95, $313.50, $318 and $340.48 per tonne.
All but one of the offers undercut US cargos tendered to Iraq, and which were priced at $332.17, $337.00 and $364.05 per tonne. While no offers were received from Black Sea origins, which were not invited to tender, nor indeed from Canada, which was, the offers reflect the growing profile of Australia in tenders, even as that of the southern hemisphere’s other top wheat exporter Argentina is waning for now, as its competitiveness wanes.
Black Sea milling wheat and feed wheat values have rallied over the past two months, “as record demand and exports continued to gnaw away at what was considered a record crop”, traders at Cofco International Australia said.
On Monday, Ikar pegged the price of export supplies of Russian wheat with 12.5% protein at $209 per tonne, a rise of $1 a tonne week on week, and up $18 per tonne so far this year.
SovEcon said that prices held at $208 per tonne, a gain of $17 per tonne so far this year, and $1 from the three-year high set earlier this month.
By contrast, export prices of Australian standard white wheat (ASW) and premium white wheat (APW) “in both South Australia and Western Australia have managed to strengthen, but only by $10 per tonne”, Cofco International Australia said.
With a help from lower freight rates too, “all in all, Australia’s competitiveness has improved around $15 per tonne in the last three months throughout Asian markets.
