Wheat futures fell slightly overnight, with the March 14 contract losing 2.5 cents and finishing at 637.25USc/bu. Although there is some concern about production from the US winterkill and Ukraine drought conditions for the 2014/2015 crop, traders seemed to take a step back overnight regarding the political unrest in Ukraine. Corn values dropped overnight as well, with the March contract down 1.5 cents. China has now rejected 870 000mt corn since November due to the GMO variety not being approved for import. They have, however announced that there will be a process carried out to approve this variety within the first half of 2014. China has cancelled further soybean shipments from the US, to source cheaper Brazilian beans. Beans overnight were up 2cents/bushel and closed at 1420USc/bushel. Our Dollar is slightly higher this morning, currently at 0.8974USD.
Cotton futures retraced overnight after the two previous sessions were stronger, proving that the 90cent level is a strong resistance level. The May contract touched 0.8957 before selling emerged. Today, cash values are $6/bale lower at $514/bale for 2014 crop.
Locally, wheat demand remains strong as conditions remain dry. We have homes both in the north and LPP/Central West to feed into the Newcastle/Sydney homes. Prices are around $320XF Moree, through to $275XF Dubbo/Gilgandra and $260XF Trangie. There is still demand for barley, however this demand is not quite as strong as wheat. Prices today are $305-307XF Moree, and at a $15 spread to wheat, is close to being priced-out for consumers.
Sorghum harvest continues and in the north quality is an issue. There is a distinct lack of SOR1 as a combination of low test weight and high screenings is pushing sorghum into SOR2/SOR3/SORX grades. Demand for off grades is limited however we do have delivered Goondi prices on our pricing sheet.
Chickpeas this week are around a $405-410XF Bellata/Moree, and $445-450 delivered Downs. Fabas have traded at $430XF Narrabri and demand for fabas is quite thin, due to the lack of product still remaining and cheaper feed alternatives.
In the past week or two we have been sourcing spot loads of grain for feed to local farmers. If you would like us to try and source product for you, please contact our office.