This week saw another sell off of Ag commodities due to burdensome global & domestic supply, & buyers taking a hand to mouth acquisition strategy. It seems, no matter where we look, whether grains, or cotton, prices have been on the slide for some time now. Pulses are the shining light, & we remain bullish on new & old crop chickpeas due to our belief that the Sub Continent will be short again this year . Faba beans might be a different story due to the continuation of the Egyptian economic wows, but it is normal at this time of year for this market to be less transparent. The domestic feed grain complex is weaker by the day, due to reduced cattle numbers, sorghum harvest, & the lack of Chinese demand to keep sorghum out of the domestic ration and minimise the oversupply of barley. The fact that growers are holding on to large amounts of old crop grain is also playing into buyers hands. This makes on farm storage a good investment! Whilst most grain futures contracts have record sold positions at the moment which has the potential to result in a “short” covering rally, we really don’t see anything other than a major weather issue in the Northern hemisphere changing the direction of these markets. Even with this assistance, it will need to be major to impact the current stocks position, therefore, watch closely for, & sell into any rallies – they will most likely be short lived! In the current market, growers should look to meet market prices, instead of offering above bids and consider offering early in the day, as bids have been fading during the day as the small demand for tonnes gets booked. Sorghum homes for prompt are quickly dwindling, and there is no sign of more space opening up.

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