London — Russian 12.5% protein wheat's discount to Australian Premium White wheat has narrowed to its smallest spread in nine months at $34.75/mt as assessed by S&P Global Platts.
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Weak buying interest buying interest Australian wheat has seen prices for it peter out while strong exports and buying from Russia earlier on in the year saw its wheat hit four-year highs.
The high prices seen for APW early in January at nearly $300/mt have shriveled to $268.75/mt Wednesday as buyers seek out US and EU alternatives to fill their stocks.
Meanwhile, Russian wheat catapulted itself to a four-year high at $247.50/mt early February.
But as its value has slumped to $234/mt Wednesday in order to compete globally, the discount to Australian could widen further.
However, APW is likely to see further pressure arise bringing it much closer to its rivals.
Buyers in Asia are opting to buy Australian Standard White wheat or Australian Standard Noodle Wheat amid high low protein wheat availability from Australia's harvest this year; this is having a bearish impact on APW.
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