Wheat futures pulled back overnight, losing 6 USc to close at its lowest level in over a month. This is despite several sources of support in the market, with consistent strong levels of demand for US wheat and production issues coming out of the likes of Russia and Brazil. The most bearish fundamental factor playing out in the market is a reduction of the base Government support level in India for wheat, which will enable the country to substantially increase its export program this season. Probably the main reason for the move overnight is that the export data for the entire period of the US Government shutdown will be released. The amount of information becoming available to the market is cause enough for uncertainty and the potential for volatility, with many participants taking profits and seeing how the market reacts. Corn was slightly softer, more as a result of the drop in the wheat market, with current values making US corn cheaper than its main rivals in the Black Sea region and spurring export demand for the commodity, which should limit further losses.
Harvest is pushing further south of Narrabri this week, with many growers in the North of the state having already finished. While completing harvest before November isn’t completely unheard of in this area, for many it is still a good week or more earlier than normal. At this point we are getting a better idea of how quality has been coming off in a broad sense. While low yields is widespread, high protein levels is common. Screenings has been a problem but not across the board. The best opportunity for protein wheat recently has been found by delivering in to container markets in Goondiwindi, Moree or Narrabri. With large volumes being sold directly in to the packers as it is being harvested prices for protein wheat have softened over the last fortnight, to the point where the premium for protein over feed wheat going in to northern markets is minimal. However the prices for delivering in to packers still offer more value than delivering in to the system. 70/10 grade wheat prices have recently been around $275 ex farm around Moree for a November/December pickup. Please call the office to discuss options for you wheat either in the system or on farm.
We also have demand for canola on a flat priced ex farm basis for growers with stocks still held on farm, around $435 – $440 on farm around Bellata. Prices in the system are currently holding just below $500 Newcastle track. Chickpeas have also had a modest increase, with ex farm prices around Goondiwindi around $355 – $360. Also we have limited demand for faba beans delivered in to Goondiwindi at $370. A reminder that AgVantage has a warehousing agreement with Agripark in Moree which allows you to store chickpeas and faba beans without having to enter in to a contract with a buyer.
Wheat overnight took a dive and closed down 9.75 cents, losing almost 30 cents since last Wednesday. Selling was present due to a weakness in corn, good moisture in the plains and excellent establishment for the soft red crop in the southern Midwest. The December corn contract overnight lost 9.25 cents and closed at 430.75 cents/bushel and is the lowest level since August 2010. Long liquidation selling was sparked by moves below last week’s and October lows and talk of high yields and good weather for the next few days. November soybeans closed down 28.75 cents with strong demand news and a strong cash basis failing to attract new buying interest. Good weather, high yields and expectations of a bumper South American crop sparked long liquidation selling.
Locally, we are making good progress on harvest in the north as weather conditions have been perfect. Wheat quality is mixed with large volumes of high protein around this year and screenings are mixed. In the earlier crops screenings were minimal however we are seeing more screenings now in the slightly later crop. Yields are also mixed and vary depending on rotations and fallow, sowing dates and location. Edgeroi/Bellata yield reports are between 2-3.5mt/Ha and a grower at Rowena has reported 0.2-1.6mt/Ha.
Chickpea quality is reasonable with a number of growers requiring cleaning to remove weed seeds but the overall quality of the peas has been good. Values have remained steady and have traded at $335/mt delivered Moree and $345-8/mt delivered Narrabri in the past week. We have demand for 5-600mt faba beans delivered Goondi at $365/mt for No1 quality. Feed faba prices are around $345/mt xf Narrabri/Edgeroi/Wee Waa.
Feed grain values remain well supported and this week we have seen values around $250XF south Goondi for Jan pick-up. $275-280XF Moree area is achievable for 70/10 and min ASW type wheat for Nov/Dec/Jan pick-up. APH values this week have come back a bit which is due to the lack of offshore bids. Feed barley values ex-farm are between $245-250XF in the northern regions for Nov/Dec/Jan pick-up.
There has been quite a bit of press around puffed chickpeas over the last month. GRDC are funding research into the puffability of certain varieties of chickpeas and whether these can command higher prices. So what are puffed chickpeas? Puffed or popped chickpeas are a highly nutritious snack food popular in India. After a bit of research we undertook our own trial of popping and puffing some chickpeas.
Our best and easiest results were achieved by baking (as opposed to frying) the peas. We trialled a mix of plain and spiced peas with different but equally morish results. The plain chickpeas were simply a rinsed and well drained can of chickpeas spread on a tray and baked at 230 deg. C for 40-50 mins, stirring occasionally. The spiced peas were just as easy with the addition of a tablespoon of Moroccan spices, ½ teaspoon sea salt and a drizzle of olive oil. Stir well, spread on a baking tray and cook at 230 deg. C for 30-40 mins, stirring occasionally.
I don’t think they will take off as a substitute for popcorn at the movies, but the team gave them a tick of approval.
The erratic expectations for Australia’s wheat harvest took a step backwards as Commonwealth Bank of Australia slashed its forecast for east coast crops, citing frost, and dryness which meteorologists see continuing.
Commonwealth Bank of Australia cut by 1.6m tonnes to 23.6m tonnes its forecast for the wheat crop in the southern hemisphere’s top exporter of the grain, ahead of Argentina.
The downgrade highlighted the sharply divergent expectations for the harvest, contrasting with an upgrade to 25.9m tonnes two weeks ago by Australian Crop Forecasters in its production estimate.
MOREE and Narrabri Shire Councils have signed up to participate in the NSW Government’s Grain Harvest Management Scheme (GHMS), following heavy criticism from NSW National MP Kevin Humphries.
When the Councils, located in key grain growing regions, demurred on the decision to implement the Scheme, Mr Humphries said he was “extremely disappointed”.
Chickpea farmer Sarah Leitch says it’s more than luck that keeps her family’s chickpeas ticking along.
CHICKPEA’S Achilles heel, Phytopthora root rot, has just copped a blow.
Researchers working in the field of breeding resistant crop varieties have just been granted a $2.5 million boost.
Next Instruments managing director Mat Clancy demonstrates how to work the touch screen PC located in the cabin.
IN a world first, CropScan has developed an on-combine analyser to measure protein and moisture in cereal grains and oil, protein and moisture in oil seeds as they are stripped and threshed in a combine harvester.
CONDITIONS are right for bunchy top disease to flare in cotton crops this season unless growers take action to eliminate infected, off-season, feral plants that have potential to contribute to the spread of the disease.
Speaking at a Rabobank cotton field day at Norwin on the Darling Downs, Queensland Department of Agriculture senior scientist, Paul Grundy, Toowoomba, said a survey of cotton growing regions throughout Queensland and NSW had shown significant levels of feral cotton growing in off-field situations.
Nick Poole, Foundation for Arable Research, says feed varieties stacked up best in NVT data over the past three years.
THEY may be classified as long season wheat varieties, but the gross margins from feed wheat lines still stack up to that of milling wheat even when there is a later break.