SINGAPORE (Reuters) - High-protein wheat prices being offered from Australia and the United States into Asia are climbing as dry weather threatens to reduce the U.S. spring grain harvest, traders said on Tuesday.
Australian prices, some of the most competitive in recent months, are further supported by farmers holding back supplies.
Australian Prime Hard (APH) wheat with 13 percent protein was quoted into Asia this week at $290 a tonne, including cost and freight (C&F), up from $280 a tonne a couple of weeks ago.
U.S. Dark Northern Spring wheat with 14 percent protein was quoted at $292-$293 a tonne, C&F, up from $280 a tonne.
"There is a possibility of prices going up further if dryness continues," said one Singapore-based trader. "In Australia too, we have some issues with dryness but the situations in not alarming."
Chicago wheat futures bounced back on Tuesday, rising nearly 1 percent as the condition of the U.S. spring crop was pegged well behind market expectations.
The U.S. Department of Agriculture reported the condition of the U.S. spring wheat crop at 45 percent good-to-excellent, below market forecasts for 53 percent.
Last week, 55 percent of the spring wheat crop was rated good-to-excellent, and at this time last year it was estimated at 79 percent good-to-excellent.
"Dryness for the U.S. spring wheat crop has been pretty significant, so ratings are unlikely to improve," said an agricultural commodities analyst.
"There might be some rain in the next few days but the longer-term weather forecast, for the next six to 14 days, looks dry," the analyst said.
Asian millers are covered for much of their supplies until July, with some positions for August still open, traders said.
"We are not overly concerned as of now," said a procurement manager with a Southeast Asian miller. "Most buyers are still hand-to-mouth."
(Reporting by Naveen Thukral; Editing by Tom Hogue)
