June 13, 2011

US corn traders get discount from Australian feed wheat 

Australian feed wheat on a delivered basis in East Asia is presently being offered at a US$90/tonne discount to US corn, according to trading executives on Friday (Jun 10).

The discount was less than US$25 four weeks ago when there was a slump in global grain prices.

"We have not seen feed wheat at such an attractive discount to corn before," a trading executive said.

Lower forecast US corn acreage and stocks have pushed prices to record highs, widening the gap to feed-grade wheat.

US corn for August shipment from the Pacific Northwest is now available around US$390-395/tonne, cost and freight, at East Asian ports, while Australian feed wheat is offered at US$302-315/tonne, C&F.

Corn is trading at a premium to soft wheat on the CBOT for the second time in 15 years.