September 12, 2011

Australia feed wheat offers US$60/tonne

Australian feed wheat offers a $60/tonne discount to US corn on a delivered basis in East Asia, trading executives said Friday (September 9).

The discount was slimmer than US$25 during a slump in global grain prices four months ago. Lower forecasts of US corn yields and output have sent prices higher, widening corn's premium to feed-grade wheat, the executives said.

US corn for November shipment from the Gulf Coast is available around $365/tonne, cost and freight, at East Asian ports, while Australian feed wheat is being offered at US$305/tonne, C&F.