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Frost and weather damage in China may result in 20 million tonnes of Chinese wheat being declared unfit for human consumption, according to a grains trader from the NSW central west.

General Manager of AgFarm in Dubbo, Steve Foran says the full situation is still emerging but 20 million tonnes would represent approximately 16% of Chinese domestic wheat production and the shortfall will need to be made up through imports.

Mr Foran says the situation is still unfolding, and it is often difficult to get reliable information out of the Chinese market.
 

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Sto is there any word on the Russian harvest or Black Sea market, as this also seems to affect market, once again hard to get accurate figures from those regions as well??
 

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While China and Brazil continue to buy US wheat on weakness, traders remain concerned that US exports will slow as European and Black Sea wheat pric-es remain at a significant discount to the US. Russia wheat prices have pushed lower under the weight of the new har-vest and European wheat futures pushed down to the lowest level in more than one year this morning. Weakness in corn added to the negative tone into the mid-session as a big US crop will slow wheat feeding usage. Even a break in the US dollar index and higher gold values failed to provide much support
 

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Black Sea export values are between $30/mt and $50/mt lower than North American bids. North America hasn't won a wheat tender in the last while due to this price difference. The world isn't looking for high quality high protein wheat anymore, at least not to the same degree anyways. If the Black sea price structure changes to the upside we may see some stability in our wheat market but until then it looks pretty bearish.
 
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