Platts APW-ASW1 spread widens to record high on scarce protein, heavy feed supply competition

The Platts Australian Premium White spread over the Australian Standard White, with no protein guarantee, wheat price assessment hit a three-year high on Oct. 13, amid scarce high protein supply, while feed wheat prices were depressed by heavy competition from plunging feed corn prices and highly competitive South American feed wheat offers to Southeast Asia.

The spread reached $24/metric ton on Oct. 13, the widest since July 7, 2023.

The widening spread comes amid elevated global wheat prices driven by tensions in the Black Sea, which have forced buyers of milling wheat, traditionally from Southeast Asia and Bangladesh, to reconsider their sourcing options.

"Exports from the Black Sea have virtually ground to a halt," a Singapore-based grains trader said.

Market participants pointed to an increasing premium and a widening spread between high-premium and feed-grade wheat, with an Australian trader stating that "APW is at a strong premium."

While the shortfall in Black Sea feed wheat is being filled by other origins from South America, the US, and Canada, market participants point to a more nuanced picture for higher protein wheat.

"Low [protein] grades are under more pressure against higher [protein] grades; the higher you go, the less there is," another Australian grains trader said.

"Lower grades are a race to the bottom with feed wheat doing the work of falling away," an Australian grains trader said.

Crop surveys from the region point toward a similar trend to 2025 in terms of crop profile, with the lower protein ASW1 dominating projected yields, while higher protein grades like AH2 have traditionally been scarcer.

"Conditions generally point to a lower protein trend, so it makes sense that APW is holding firm," an Australian trader said, while a second Australian trader noted that "APW/H2 is well bid while ASW9/feed is offered aggressively, which is reflected in the widening spread between APW and ASW."

In Vietnam, a flour miller noted several cargoes of South American feed wheat had traded in the mid-$290s/mt CFR Vietnam in the week ending Oct. 5, while a feed miller source stated bulk cargoes were sold with several holds of milling grade wheat too.

Corn price drop pulls feed wheat down

Corn inventories were heavy for the fourth quarter of 2026, with heavy bookings for October-November shipments concluded in September, a Vietnamese feed miller source said.

"The Asian market is covered until January arrival, and feed millers will replace feed wheat with corn that is more plentiful. However, milling wheat is harder to replace than feed wheat," the source said.

Platts assessed feed quality corn CFR Northeast Asia up $1.5/mt at $281/mt Oct. 13 for cargoes arriving over Jan. 11 to Feb. 10, but down $15/mt month over month.