Got #1 HRS 14.5?

[macdon02]

SINGAPORE (Dow Jones)--For the first time in around 30 months, Asian millershave been shelling out more than $500 a metric ton for high-quality millingwheat and prices are unlikely to fall in the next few weeks. Millers are locking in cargoes of high-quality milling wheat at astronomicalprices amid concerns that supply may tighten further until June, when the nextcrop will be harvested in the northern hemisphere. The more price-conscious customers in low-income countries such as Bangladeshare looking at Pakistan to cover their needs but South Asian wheat at more than$350/ton, cost and freight isn't cheap either. "Prices are rising but what is more noteworthy is that millers are ready topay higher rates provided they get the quality they are used to," said aSingapore-based executive at a global trading company. Taiwan Flour Millers' Association has purchased a cargo of 52,000 tons ofU.S. wheat for shipment from the Pacific North-West during the March 15-30period. Dark Northern Spring wheat with 14% protein was bought around $525/ton, basiscost and freight. The prices of high-quality milling wheat imported by Taiwan are widelyconsidered a benchmark in Asian grain trade. "Taiwan and Japan purchase a very special quality, a Mercedes Benz equivalentof wheat, which is bound to be costly," a grains analyst said. He said the DNS grade which Taiwan has purchased contains 75% or more darkhard vitreous kernels, which fetch a premium in global trade; this grade iscurrently in tight supply. Taiwan also purchased the Northern Spring grade with 14% protein around$499/ton, while the same grade with 13% protein was bought around $428/ton,c&f. Japan is also paying a premium to get its noodle wheat supply from Australiaand has changed its Australian Premium White wheat blending norms. Australian noodle wheat prices rose above $500/ton as a devastating droughthit production in Western Australia. In some cases, high-grade wheat isn't available even if buyers are willing topay more. On Thursday, Japan didn't get any offer of Canadian wheat in its weeklytender; it usually needs grain with a protein value of 13.5%-14.0%. Due to floods last summer and stocks gradually getting exhausted, Canadianwheat inventories are now with slightly less protein. In Bangladesh, where quality norms are lower, buyers are snapping up cargoesfrom Pakistan. Pakistan has sold eight cargoes for prompt shipment in bulk to Bangladeshtotaling around 182,000 tons, and more sales are in the offing, tradingexecutives said. The sales were made at $331-$334/ton, free on board, for grain with 11.5%protein. Exporters are shipping out wheat purchased from surplus governmentstocks. For those who can't afford even these prices, the option is to purchasedowngraded Australian wheat. Australian General Quality wheat, a term used for flood-affected grain, with10% protein and 11%-12% moisture, has been sold to Bangladesh at $260-$270/ton,one of the exporters said. However, with moisture being 2-3 percentage points higher than normal, thisimplies actual wheat content will be lower.

[bucket]

And the cwb at 100 percent call is sold out.

Once again they sold a short crop out early. ANd now they have nothing to sell into the market in june and august.

What a great market analysist (brucie) we have.