Market Comment

The wheat markets took a hit overnight, with all three wheat futures markets taking losses between 10 and 20 cents a bushel. Soil moisture is forecast to improve, with last week’s snow beginning to melt, and the forecast for future rain in the southern plains, and western corn belt being the main driver overnight. Asian destinations have been enquiring about Chicago style wheat for deferred delivery, whilst the feed market has been actively chasing wheat for prompt use, as the spread from wheat to corn narrows to evens. The Corn market, was a little softer, following wheat lower 4¾ cents. Corn continues to be supported by ethanol production, and tight supply in the US, whilst improved soil moisture bodes well for the massive corn plant which continues to be forecast. The Soy markets bucked the grain complex trend and finished 20 cents a bushel higher, whilst the weather in the US and Argentina pressured the market, continued delays in the Brazilian harvest and port system provided upside with the US crop well ahead of the planned export program for this season. The cotton market has continued its rally above the key 85.00 US cents/lb level, spurred on by continued interest in the row crop acreage battle. The May contract set a new 8 month high, before finishing at 86.47 USc/lb. Domestically, basis has continued to weaken with the futures rally, but Aussie prices have been well supported by a dollar which has successfully broken downwards to set a fresh 7 month low of 1.0113. With the international markets coming off, local grain prices have continued to slide. The lower dollar, and firming basis continues to limit the downside on most grades. We have buyers looking for APH/H2 both track and delivered packer or Brisbane port, along with APW/ASW and 70/10 style wheats in the system or on farm. Sorghum in the system and ex-farm is fiercely competitive, whilst homes for Sorghum 2 are out their depending on quality and location.

Current Interest

– SOR1 XF Prompt movement, SOR2 XF Goondi to LPP regions.

– Mungbean hectare contracts, call with any enquiries.

– APH2/H2 del Narrabri; APH2, APW1 del Bris

– APW, ASW1 & 70/10 XF March/Apri