It was nice to see some upside movement in grains overnight that spilled into domestic values. Wheat futures closed up 9-11 cents overnight with concern over the quality of EU crops as rain during harvest is downgrading quality. Tensions in Russia/Ukraine remains bullish to the market and all eyes will be on the monthly USDA report released next week. It is expected that corn production estimates will increase and this will most likely put pressure on the corn market and drag wheat with it. US corn crop conditions are at the top of the 10 year range.
Domestically, we have seen a small spike in values since last week. New crop Newcastle multigrade contracts have touched $300/mt track with higher values in northern sites.
New crop sorghum track values have increased around $10/mt in both Brisbane and Newcastle zones and delivered values for wheat, barley and sorghum are all higher today.
New crop chickpea values are currently around $475/mt delivered Dalby on a hectare contract. Into Narrabri for new crop we expect today these would be around $460-470/mt. Old crop values are still steady between $440-445/mt delivered Narrabri. We do have prompt homes available for anyone interested. We can also look at chickpeas delivered Brisbane.
We have a small pocket of demand for old crop faba beans. Delivered Toowoomba we would be $453/mt and XF into the domestic market $405XF, depending on location. These aren’t for large tonnages as demand is still quite thin.
Many growers are looking at spring & summer crop options at the moment. Mungbean values remain strong as Aussie beans will be the next available global export. With prices at current levels it is expected Burma and China will experience a large crop this season and this will more than likely pressure summer crop prices which are $100 below spring plant prices..
The 2014 Cotton Conference has kicked off today at the Gold Coast. For any growers attending, ECOM are holding drinks tomorrow evening at the Moo Moo Bar from 4-7pm. Feel free to pop along if you have a chance to.