Southern Wheat Market Bucks Trend as Export Buying Boosts Demand

The southern wheat market has bucked this week's softening trend due to export cargo buying from Asian customers, who are looking to secure supplies from the Black Sea. Rain in eastern Australia has lifted production prospects for some northern cereals and made the south's big barley crop look even bigger.

Northern consumers are comfortable with the region's wheat carry-out and southern new-crop production, ensuring plenty of grain will be available. The narrowing spread is the outlook for new-crop freight rates, which are expected to remain at least 25 percent above levels seen earlier in the year due to expensive diesel.

Sorhghum planting may start early in some areas after recent rain boosted yield prospects. However, the rainfall has not been enough to flush current-crop tonnage into the market, and growers are hesitant to sell large quantities of grain.