Futures markets were mixed overnight, with some strong demand signals being countered by increased expectations of production. Added to this was reports of another two cargos of US corn being rejected at destination in China due to the appearance of unapproved GM strains in the stocks. This is on top of another load rejected for the same reason last month. There is some speculation that the Chinese will hold off until the South American crop comes online, with favourable conditions making it a cheaper alternative. This also represents an opportunity for a market for Australian feed barley, however current values in NNSW and Qld would likely price it out of this market. This being said, the corn market managed to stave off losses for the session, while wheat pushed lower by 5 USc, with positive production news outweighing recent consistent demand. The threats to the US winter crop are now abating, with widespread snow coverings allowing the crop to enter dormancy before it is effected by freeze damage, while Canada is expecting production to push close to 34 mmt.
Harvest is close to being completed now in the Newcastle zone, with a dry run this week going a long way to tidy up remaining crop in the ground on the Liverpool Plains and the Macquarie. The main mover in wheat markets of the last week has been durum, which over the course of last week saw prices push above $340 track, working out to be $300 for many durum delivery sites. Decent quantities of durum have been getting sold of late, with $300 site being trade at Moree and Edgeroi Graincorp, while Liverpool Plains sites are up to $308. Bread wheat prices have been holding steady over the last few weeks, with prices for stocks in the system in a tight trading range of only a few dollars. Grades of particular interest in the system are APW, with prices above $302 but up to $305 in certain sites, also APH2/AUH2/HPS1. For stocks on farm, we are buyers of high protein wheat in to several destinations, with delivery on to the Downs of APH up to $325, in to Narrabri starting at $300 for APH2, or delivered to Newcastle port at $325-$330. All these destinations can be priced on a multigrade basis with competitive spreads to AUH. Also having a bounce recently is chickpeas. On farm parcels in the north of NSW are $380-$390, with $400 on farm prices possible Goondiwindi north. Also $400 delivered prices either in to Narrabri or Dubbo packers. Lupins are also in high demand delivered in to container markets.
With recent rains encouraging some growers to begin planting sorghum crops, we have strong options for pricing of new crop either in to the system or on farm. What seems clear at this stage is that there is strong demand for Australian sorghum, largely stemming from China, while limited opportunities for planting in Queensland is currently constricting the size of the crop, although crop can still be planted for some time up there. On farm on the plains is around $245 depending on location,delivered Newcaslte port is at $291, while track prices are holding at $283. Growers around Narrabri can deliver in to town above $250, while further north on farm prices are again around $245, while Brisbane track is above $290. Please call the office to discuss prices and delivery periods.