With two sessions left until the next round of USDA World Supply and Demand reports are released, the trade are focused on positioning themselves ahead of the release. Corn traded down all session, but firmed into the close, with planting pushing ahead in central states ahead of another weather event likely to pull up the planting effort by weeks end. Wheat followed corn lower, pressured by an improved outlook for crop maturation, and the market digesting a surging increase to 42 million tonnes of wheat in Indian government warehouses. Soybeans moved higher on tight US stocks, and confirmation of 3 cargoes having been bought out of South America, the new crop contract struggled under the likely swap of some acres from corn to beans. Cotton gained 53 pts on the July contract, but ranged a wide 272 pts. The firmer finish attributed to the slow planting pace of this years current crop, and the expected decrease of US stocks by 500,000 bales.
Currency has rebounded to around the mid 1.02 level this morning, on some improved trade data out of China, and better employment data locally, after dropping into the low 1.01’s following Tuesday’s unlikely rate cut.
Cotton prices have kicked into the $440’s for both 13 and 14 crop. It will be interesting to see the USDA forecast for 13/14 crop, with the International Cotton Association forecasting an increase in ending stocks to 84 million bales. ECOM also have interest in the longer dated 15 crop with a price today of $431.
In domestic markets, basis is remaining strong for all grades, and the drop in currency helping to increase prices for all grades of old crop. We are buyers of sorghum and all grades of wheat, ex-farm, delivered NSW and QLD destinations as well as your local AWB/Graincorp sites. The chickpea market remains stagnant at around $500 Narrabri/$510 Dubbo with some continued grower selling keeping a lid on prices. With no run up in demand prior to Ramadan, maybe we should start to expect a drop off in prices towards the end of the month. We have been hearing, and seeing a lot of dry sowing, and moisture seeking and even watering up from growers hoping that a chance of rain next week, turns into something substantial. New crop pricing for wheat has jumped up into the mid $280’s Newcastle and Brisbane track. For growers interested in forward contracting new crop chickpeas, we have hectare & fixed tonnage contracts available delivered Dalby.