Daily Wheat Report

South Korean flour mills have issued a tender to buy 100,000 MT of US milling wheat, traders said on September 29. Grade split, shipment window and closing date to be confirmed.

Compare the last two: September 10 the group bought 100,000 MT (50kt US from CJ International at $273.78 SW / $335.98 HRW / $335.52 DNS FOB for Jan 1-31, plus 50kt Canadian CWRS in the low $330s); August 6 it bought 36,800 MT US at $261.35 SW / $319.25 HRW / $320.36 DNS FOB.

With KC Dec 23c under its September 10 level, an HRW print near $325-330 FOB would confirm the hard-wheat premium is coming off in the Pacific as well as in the CFR markets.

TCP opened 13 bids on September 28 for 185,000 MT +/-10% of milling wheat; 12 were technically and financially responsive. Lowest evaluated bidder: Bunge SA at $339.36/MT CFR Karachi and $340.36 CFR Gwadar - the only bidder to quote Gwadar.

Other responsive offers, CFR Karachi: Olam $341.88, Ameropa $343.47, Agrocorp $343.74, CHS $345.00, Mera $346.19, Louis Dreyfus $346.50, Falconbridge $347.49, Al Ghurair $349.00 (admitted to the bidding this round), Saif $350.53, Soufflet $354.82, Aston $354.83. Mercury ME non-responsive (short of export experience).

Grievances by 1800 hours September 29; TCP may reject before award. If awarded, TCP would likely again ask the other bidders to match the lowest.

Context: $339.36 is $9.47 under the $348.83 paid on September 19. CBOT Dec fell 23½c between the two closings (726¾ to 703¼), roughly $8.60/MT - the drop in the offer is almost exactly the board move, so the CFR Karachi premium over Chicago has held through a week of truce headlines. Spread of offers $15.47 between lowest and highest, versus Bunge to Olam $2.52 at the top - a tight, competitive book.

Jordan's MIT bought 60,000 MT of optional-origin milling wheat from Bulgarian trader Buildcom at $332/MT CFR Aqaba, shipment first half of November 2026.

Four companies, two envelopes. Other offers: CHS $335.88, Olam $339.00, Cargill $342.93/MT CFR.

Context: Jordan cancelled on September 1 with offers at $340-350 CIF; $332 is $8-18 under those and $13 over the $318.95 CHS sale of August 18. Bulgarian origin at $332 CFR Aqaba sits between Algeria's $319-321 (Sep 15) and TCP's $348.83 CFR Karachi (Sep 19) once freight is allowed for - the Black Sea/Danube premium is holding at the physical level while Chicago has fallen 18c since the TCP award.

TCP bought 365,000 MT of the 750,000 MT sought, all at $348.83/MT c&f after asking bidders to match the lowest offer (Agrocorp's). Seven lots: 50,000 MT each from Louis Dreyfus, Bunge, Agrocorp and Aston; 55,000 MT each from Falconbridge, CHS and Ameropa. Olam's $369.95 not taken.

A new tender is expected within days for the remaining 385,000 MT. Shipment in 50,000 MT consignments to arrive Karachi/Gwadar by November 20 at the latest.

Optional origin excluding Israel and India; offers cited Russia, Ukraine, Bulgaria, Romania, Canada, Argentina, Brazil, the US, Latvia and Germany. Pakistan is believed to have a substantial requirement after a disappointing domestic harvest.

Context: $348.83 is ~$29 above Algeria's $319-321 c&f four days earlier - the nearby premium with seaborne Black Sea exports at a virtual stop. Half the program booked; the other half comes back to a market that has since fallen ~15c in Chicago.

OAIC bought about 500,000 MT of soft milling wheat in the tender that closed September 15, European traders said. Initial purchase estimates 500,000-510,000 MT, some higher; further volume and price estimates possible.

Prices initially reported at $319-321/MT c&f. That is roughly $30/MT above the August 5 tender, when Algeria took up to 720,000 MT at $289-290/MT c&f.

Optional origin: Romanian and Bulgarian wheat expected to be the focus, with north EU wheat including the Baltics also possible; talk of Russian wheat shipped via the Baltic. French wheat remains excluded on political grounds.

Shipment November 1-15 and November 16-30 from Europe and main origins; one month earlier if sourced from South America, India or Australia. Tender took place with seaborne Black Sea exports at a virtual stop.

South Korean flour mills bought 100,000 MT of milling wheat via tender: 50,000 MT US and 50,000 MT Canadian, all FOB.

US portion, seller CJ International, shipment January 1-31, 2027: 23,000 MT SW 9.5-11% protein at $273.78/MT FOB; 14,385 MT HRW min 11.5% at $335.98/MT FOB; 12,615 MT NS/DNS min 14% at $335.52/MT FOB.

Canadian portion, seller GrainCorp: 50,000 MT CWRS in the low $330s/MT FOB, shipment January 15-February 15, 2027.

Compare August 6: HRW $319.25 and DNS $320.36 FOB - hard wheat FOB up ~$16/MT in five weeks. Trader estimates.

GFSA cancelled its 535,000 MT hard wheat tender on September 7, calling the offers unsuitable on price.

The tender had specified Red Sea discharge ports only to avoid Hormuz transit risk.

Saudi has storage and can wait; contrast Pakistan, which has directed TCP to buy 750,000 MT of milling wheat for November delivery (tender expected within days, arrival Karachi/Gwadar by November 20).

Jordan's MIT cancelled its milling wheat tender again on September 1, having drawn only three offers — from Olam, CHS and Cargill.

Offers were reportedly $340–350/MT CIF Aqaba, roughly $25–30 above the $318.95 CHS sale Jordan accepted on August 18.

Next milling wheat tender expected September 15.

Tunisia booked 125,000 MT of milling wheat (5 x 25,000 MT) from Bunge at $308.05/MT CIF on August 27.

In the same round, Tunisia's OdC feed barley tender took 75,000 MT in three 25,000 MT lots: Bunge at $301.68 and $303.85/MT, Casillo at $299.69/MT CIF.

Tunisia's milling wheat price compares with Algeria's $289–290/t c&f booked on August 6 — a ~$18/t rise in three weeks as Black Sea alternatives reprice.

Japan's MAFF bought Australian Standard White (ASWJ) at $320/MT FOB on August 20.

Buyers accepted a higher premium against APW — the usual spread would be around $10 at this time of year.

In the same MAFF tender, Canadian wheat traded at an October basis of 120–125¢/bu over MWZ.

Philippines' San Miguel Corp bought a cargo of US SWW from CHS on Wednesday at $295/MT CFR Batangas + Bataan, September shipment for around October 5 arrival.

US SWW was reportedly competitive with multiple sellers offering at the tender — last heard above $261 FOB PNW for September.

SMC also booked ASEAN corn from a Vietnamese seller in the low $280s CFR for December arrival.

Jordan bought around 60,000 MT of milling wheat on August 18 in a tender for up to 120,000 MT.

CHS sold at approximately $318.95/MT C&F. Other offers: Bunge $337.00, Cargill $339.80, Olam $324.50/MT C&F.

Shipment October 1–15. A new wheat tender follows on August 27 for Oct 1–15 or Oct 16–31 shipment.

Jordan's 120,000 MT barley tender closed August 19 with no purchase (participants: Ameropa, Bunge, CHS, COFCO, Olam); a new 120,000 MT barley tender is expected August 26 for October shipment.

Taiwan Flour Millers bought around 97,200 MT of US milling wheat on August 14 in two consignments.

First vessel, 49,350 MT for Oct 24–Nov 7 shipment: 29,750 MT DNS 14.5% protein at $314.16/MT FOB, 12,650 MT HRW 12.5% at $317.09, and 6,950 MT soft white 8.5–10% at $260.88. Freight $49.28/MT.

Second vessel, 47,850 MT for Nov 26–28 shipment: 29,450 MT DNS 14.5% at $319.67/MT FOB, 11,650 MT HRW 12.5% at $319.09, and 6,750 MT soft white at $260.88. Freight $50.74/MT.

Trader estimates, subject to revision.

Three positions of Australian feed wheat sold on August 12, totalling around 150,000 MT, for shipment to the Philippines.

Shipments spread across October, November and December.

Prices around $285–286/MT FOB, equating to approximately $309–310/MT CFR Philippines.

South Korean MFG bought around 134,000 MT of feed corn on August 7.

Origin: South America or South Africa. Two lots at approximately $271.49/MT C&F plus $1.50/MT surcharge for extra unloading.

Sellers were Cargill and ADM. Arrival estimated around December 10 and December 20.

Tunisia's 50,000 MT feed corn tender was cancelled on August 7.

Lowest offer was from Cargill at $278.50/MT C&F.

A new tender is expected to be issued next week.

South Korean milling group bought 36,800 MT of U.S. milling wheat via tender on August 6.

Three lots: 13,000 MT SWW 9.5–11% protein at $261.35/MT FOB, 13,500 MT HRW min 11.5% protein at $319.25/MT FOB, and 10,300 MT DNS min 14% protein at $320.36/MT FOB.

Shipment: Dec 20, 2026 – Jan 20, 2027. Seller believed to be United Grain Corporation.

This purchase is additional to around 50,000 MT bought by another Korean milling group earlier this week.

Algeria's state grains agency OAIC bought around 540,000–720,000 metric tons of milling wheat in an international tender which closed Wednesday.

Purchases were reported at around $289–$290/t c&f. The wheat can be sourced from optional origins but traders expected Romania and Bulgaria to be major suppliers.

Russian wheat was offered but not favoured despite cheap prices, apparently because of concern about the impact of recent attacks on Russian shipping and ports.

Shipment in three periods: Sep 15–30, Oct 1–15, Oct 16–31. If sourced from South America, India or Australia, shipment is one month earlier.

In its last soft wheat tender on June 17, Algeria bought over 800,000 tons at around $264–$265/t c&f.

Jordan wheat tender on August 4 attracted only 2 participants: Bunge and Aston.

Tender was cancelled — envelopes were opened but prices were not revealed.

New wheat tender issued Tuesday August 11 for shipment: FH/LH September and/or FH/LH October 2026.