CBT wheat futures took a hit overnight down 10-11 USc/bu across all contract months. May closed at 463 USc/bu with Dec at 494.25 USc/bu, as USDA first winter wheat crop condition report showed conditions better than market expectations, with weather risk premium easing market short position holders. Corn future made modest gains, supported by firmer energy product values, with the May contract at 358 USc/bu and Dec at $371.50, still in recovery mode following the last month USDA report. Oilseed futures continue to make small gains with futures values for Soybean and Canola holding at the top of the recent trading ranges. The $A hold around the .76 level or benefit only to importers.
Lack of rain continues to provide some support for domestic values, with demand into the grazier markets picking up. Feedlot and Stockfeed manufactures continue to hold good forward coverage and continue to buy hand to mouth on any additional demand, usually in small volume lots. Exportable stocks of grains remain in Brisbane and southern port zones, with limited exports appearing on the shipping stems as export values remain at a discount to the domestic market.
Higher protein wheats, H2 or better, continue to find some modest support in both the track and X farm markets for both Newcastle and Brisbane port zones. Lower grade interest is improving with the buyers with grade price spreads narrowing towards the APW level.
Durum wheat finds a buyer for all grades in both track and delivered bids available. Level of demand is unknown and limited buyer competition remains. Some positive news internationally for Durum, is that Moroccan harvest is well below last year and increased imports will be needed, at least assisting in reducing carry over of global stocks. Barley demand is improving modestly, with bid levels unchanged to $5 firmer in freight advantaged areas. Sorghum values hold as harvest progresses, with no quality issues and yields above expectations given the season. Mungbean harvest continues with seasonal conditions lowering yield prospects, with quality holding mostly in the processing grade. Most packers are fully committed through into May, with some buyers not buying with export markets proving difficult for the July onwards period. Faba Bean sellers will be destined for the domestic feed markets as export interest is absent and limited price indication for new crop are seen. Reports of planting in western regions this week and further east to commence next week.
Chickpea values continue to firm, with current crop stocks limited has seen early harvest, October delivery premium of $20 over November. Lack of sellers and keen buyers has seen new crop values improve with track bids at $840 port basis and packer bids $860 Downs and $840 Narrabri region for fixed tonnes. Area contracts, minimum.25t/ha are at a $50 – $70 discount.
Cotton bids hold in the $420-$425 range, with buyers offering various pricing options to growers to allow for ginning and pricing later options.