Fact of the Day – On this day 70 years ago the great Sir Donald Bradman scored his 100th first class century. In all, ‘The Don’ scored 117 first class centuries in 338 innings.
Throughout the week across Northern New South Wales, the prevalence of truck after truck hauling harvest equipment south has been one, quite informative and two, nostalgic. Why? Mainly because it means harvest 2017 is nearly all wrapped up for the year and we can now change our focus to the summer season and 2018 planting. Throughout the week conditions across the area have been at maximums of 30 degrees with quite cool nights and a wet change set for over the weekend. The Narrabri and Moree districts are expected to receive around the 30mm mark, with bigger falls forecasted across the Walgett shire and the Liverpool Plains. Looking across to the US, winter Wheat struggles amidst the growing concerns of dryness at this crucial development time and the coming winter’s low temperatures could also wreak havoc on early staged crops. The winter Wheat is roughly 95% planted and looks to conclude by the end of the month.
Feed Wheat demand continues to be of interest as stated last week due to the significant amount of high protein grain seen this season. Prices delivered Downs for the New Year are floating around the $325 mark with carry costs through to April and five dollars less for prompt delivery in 2017. Barley has plateaued out slightly and is looking at the $312 mark delivered Downs November with a Narrabri delivery price around $280/mt. We do see the F1 market to soften a little over the coming days with the expected weather forecasted for the North West and Southern Downs. Faba Beans, no change, which means there is still a substantial amount of demand for 2017 pick up at $250/mt subject to location and $300 for new crop delivered in Narrabri.
Chickpeas… what a roller coaster thus far. Late last week we saw the Indian government announce a 50% import tariff on field peas whereas the current import tariff on wheat was also elevated from 10% to 20%. For now this has created a large amount of speculation on whether this will follow on to Chickpeas and/or Lentils down the track. Regardless of the market (Housing, Financial) when there is a large degree of uncertainty the general consensus is to sit tight, watch and not become to invested during the volatile period. The Chickpea market has been affected by this and many buyers, traders and growers are doing the same. Prices seen on Monday of $800 delivered Narrabri have come back now to between the $720-$750/mt mark (At the time of writing). We expect to learn more throughout the remainder of the week, though with government intervention on the Sub-Continent it is quite a heavily fluctuating market.
The Cotton market has remained quite static for now since the US Department of Ag released the WASDE report late last week. The report stated that there didn’t seem to be a huge worry about the freeze affected bolls across the main southern growing regions as it appeared much less than first estimated. As the US picking season is to kick off, the Australian crop comes in to play with the international market looking to be informed on our plant progression, moisture levels and upcoming weather events for the remainder of 2017. With the drop of the Aussie dollar and strong Cotton futures we have seen bale prices move freely between the $510-20 mark the last couple of days. Today 2018 prices sit at the $515 mark with 2019 at $501. As our dollar today is just over $0.76, the greenback fell up against the Euro, though still chasing those monthly highs we have commented on as of late (At the time of writing).