GLOBAL markets are settling after the spike in values following the drought in Russia and neighbouring countries.
The global benchmark, wheat futures of the CME Group in Chicago, has eased just under 7 per cent since the peak earlier this month.
Rumours of Russian grain imports vary from 1.5 million tonnes to five million tonnes.
The market is assessing other factors which may override the shortages of wheat in Russia.
Panic has moved to concern as buyers get on with the job of securing grain.
The largest wheat buyer in the world, Egypt, has continued to buy wheat from France, Canada and the US. Australian wheat proved too expensive, sitting about $US15 above the other successful offers.
With the Black Sea wheat out of the picture, it has been many years since Australian wheat has been this close to the Egyptian market.
Analysts say the biggest concern for maintaining wheat production is establishing new crop wheat plantings in Russia.
Also wheat producers in the southern hemisphere are being watched carefully.
Farmers in Argentina are about to complete their wheat sowing in early September.
Back home, values are generally higher on the back of a lower Aussie dollar and continued buying interest from exporters and domestic consumers.
On Monday, the dollar had slipped around US3c in the past two weeks, awaiting the outcome of the federal election.
Old-crop wheat values are higher this week.
Exporters are eager buyers with APW prices up $6 to $278 a tonne for delivery to Geelong.
APW is also up $8 a tonne in Portland and $16 a tonne higher in Adelaide compared with last week.
Likewise, domestic buyers are chasing energy grains with wheat for stockfeed $10 a tonne higher this week to $290 a tonne, or $275 a tonne delivered to the Goulburn Valley.
Following the spike in wheat prices, a settling of grain prices could iron out some anomalies within feedgrains.
Since early July, domestic stockfeed wheat prices in Melbourne have risen $85 a tonne and feed barley has spiked $100 a tonne.
During the same period, triticale lifted only $55 a tonne and lupins $25 a tonne.
This puts triticale at a discount to feed barley for the first time in three years.
Normally triticale trades at a midpoint between wheat and barley reflecting its energy content relative to the other cereal grains.
Buyers have struggled to secure triticale with adequate test weight this season and triticale that tests 63kg per hectolitre is typical.
