The news for wheat continues to pressure the futures market lower. The market anticipated an unchanged 30% Good to Excellent rating on the wheat crop which was released after the close of the trading session. Spring plantings continue, in line with the 5 year average, with 88% of that crop in the ground, in good conditions. Corn seems to have found a level of support at current levels, with corn plantings now all but concluded, the first crop conditions report placed the Good to Excellent rating at a top of the 10 year average range at 78%. The only issue that seems to be popping up for corn is the possibility of the crop getting too wet. If only we had that issue here at the moment!! The prompt soybean market is running a different race to new crop, with tight supplies now pushing prices higher, whilst the expectation of plentiful supply for the coming harvest forcing the new crop and November contract lower.
The cotton market has found some support with lower futures prices bring more mills to the table, along with the early start to the fund rolls, which should see some additional support to the December contract. Rain in West Texas has been promising, and follow up rain events are already appearing on the forecast. Whilst this rain wont get a crop home, it gives them a good shot of getting something started. Locally, Ecom have competitive prices, today at $487/bale for June/July deliveries only.
Our dollar dropped into the $0.92’s overnight. The RBA meets today for the June interest rates meeting. Nothing new to rock the boat at the meeting, and steady as she goes view on rates for the foreseeable future is about all that should be expected.
New crop barley and wheat prices have fallen on the back of the rain event of the weekend, we are hearing that selling from the central west is behind the fall, with growers in the north still mostly sitting on the sidelines from the market. Track and ex-farm markets are both back somewhere close to $15-17 from last week. Old crop prices have also lost some ground, as the delivery period stretches closer to the new crop delivery months, and selling from growers in the south is filling the gap. Old crop chickpeas remain lightly bid, whilst new crop chickpea and faba beans remain around the same level as last week.