The AUD has continued to trade tight against the bulk of its rivals with the Euro and Japanese Yen standing out over the rest. This week offshore markets again reacted to updated figures on the US crop conditions and planting progress. US wheat futures prices finished mostly weaker on Tuesday. Kansas prices fell sharply to finish not far off lows for the July 2017 contract. Canada’s prairies and some of China’s wheat regions remain on our weather watch list but both are only latent problems for now.
At the start of the week cotton had an eventful spike with 2017 crop shooting up to $580/bale and 2018 to $540/bale, though after the overnight change buyers decided to sit quiet and out of the market or focus on the 2019 crop with bids around $520/bale. Old crop Cotton futures prices fell last night, with new crop prices a shade lower. All the action was clearly in the old crop market where prices fell 4¢ on the day. With most of the cotton having being stripped the emphasis to get winter crops in the ground over the coming weeks is detrimental especially with the weather forecasted for the remainder of May.
Barley has remained strong since its spike last week coming in at $230-40 delivered Darling downs from some buyers. Sorghum 1 has also rallied with bids of $270 delivered Brisbane for June/July. Chickpeas have steadily increased due to Pakistan deciding to enter the market again, this has brought current crop prices of $1,145 delivered Brisbane June/July . New crop remains barely unchanged as of the amount of uncertain product, prices remain in the general area of $800-$900/mt delivered Newcastle.
The export market continues to stay firm on milling Wheat with strong demand for high protein with parcels trading at the $280-90 delivered Narrabri and this trend looking to continue in to the near future, Faba Beans still very quiet currently with prices at $190-$200 ex-farm depending location.
New crop markets will remain quite volatile with emphasis on contributing factors such as weather events and overseas markets.