In futures overnight, the July wheat contract finished up 5 cents at 721.5cents/bushel. The crop tour across Oklahoma and Kansas is reporting lower than expected yields and the forecast is for another two weeks of dry weather, which could cause further deterioration of US wheat crops. Corn was softer overnight with the July contract down 2.5 at 519 cents. The next 7 day weather outlook is for drier conditions before moving into further rain. This 7 day break will most likely see some large areas of corn planted. Bean overnight were softer also with the July contract losing 4 cents. It closed at 1512.75 cents and at these levels is trading at a large premium to corn. There is talk from some growers/traders that there will be a switching of corn acres into beans, which will limit any upside in new crop beans prices. Our Dollar today is trading around .9288.
Locally, sorghum values have declined significantly in the past two days, predominately in the Brisbane zone. During the course of Tuesday & Wednesday, we have seen these values decline from $340/mt delivered Brisbane to $325/mt delivered today, with heavy selling occurring. Moves of these amounts are enough for consumers to make the decision to switch rations from white grain to sorghum. It certainly doesn’t bode well for wheat/barley prices. In saying that, these values have only seen minimal movements and today, barley values are sitting very similar to yesterday’s values.
We are finding growers in certain regions happy to hold current stocks through the winter period in the hope of continued demand and strong prices through the winter period from dairies and stock feeders in the Tablelands and on the coastal regions.
With regard to winter crop planting, ideally we would love to see 1-2 inches of rain in the next week or two
Today, we have seen new crop feed grain values in the north strengthen and today we are seeing values bid close to $290XF in the NNSW region for harvest pick-up and $5/mt carry through to Jan. Delivered Downs new crop values are $320-325 for harvest delivery of SFW1. These prices are much stronger when comparing to track values.
Barley prices today remain stable, compared to the sorghum decline. Barley values around Gunnedah/Emerald Hill have traded at $300XF for May pick-up.
Chickpeas remain fairly quiet with only a few genuine enquiries and sellers. Delivery has moved into June now and we believe there to be large stocks of old crop still on-farm. Values today range from $460-470 delivered Downs region and we believe $440 delivered Moree would be achievable.
New crop fabas are of interest and we have both hectare and fixed tonnage contracts available. Prices will vary, depending on location but we expect high $300’s delivered packer for fixed tonnage and a $20/mt discount for hectare contracts and $15-20/mt discount to No2 quality. Old crop fabas are difficult to source with minimal buyer demand due to alternative feed sources much cheaper to purchase.
We continue to have new crop demand for canola on a hectare basis. Prices remain around $500XF for Nov/Dec pick-up. Please contact us for any firm enquires and contract terms & conditions.
Cotton picking continues across the region, with some delays now around Narrabri where we received falls of rain yesterday. The overnight markets were almost unchanged overnight with the July contract finishing up 23 points. The December contract was down slightly which is just widening the inverse from July through to December. Most merchants will discount any bales delivered post June as a result of this, unless the inverse narrows or the December contract moves into carry. Prices today are at $423/bale.