Australia’s exports of feed wheat may be about to get a shot in the arm from a volume buy reported overnight for The Philippines.
The purchase reportedly involves 165,000 tonnes of feed wheat, destination The Philippines.
If the origin was Australia, it would be shipped as three cargoes each of approximately 56,000 mt, for arrival at destination in April, May and June 2017.
The price at which the cargoes traded was within cents of US$199 per metric ton cost and freight (c and f).
Australian shippers have a chance at success to win this business if they can compete with Black Sea-origin wheat.
“Western Australia is price competitive,” said Market Check’s Richard Perkins.
“It would be the natural Australian state of origin to perform this business, particularly this year, given ready access to its combination of milling and feed grade (including frosted) wheat stocks.”
Today’s large East Coast crops, however, would point to equal opportunity for another Australian state subject to logistics and terminal stock.