Overnight there was little bullish news to push the market higher and as a result we saw further losses in wheat and corn, and a 4-5 cent rally on the November soybean contract being the only green on the board. The monthly USDA Report will be released tomorrow night and is expected to be bearish. Corn lost 6-7 cents last night and the December contract has now pushed below $4US/bushel. Technically, some have suggested the market is oversold and due for a bounce and that a 20-30 cents bounce would increase grower selling, however the fact is that fundamentally, the outlook for corn remains bearish. Wheat lost 5 cents overnight and although there is international demand for wheat, the preference has been to buy cheaper (Romanian) wheat which failed to push the market higher.
The forecast for rain next week in the north is nothing to get too excited about at this stage. We believe the majority of the rain will hit Victoria and southern NSW (again!). Any falls would certainly be welcome but ideally, we would love to see 1-2inches next week to keep crops ticking along.
Sellers have remained fairly quiet this week with bits and pieces trading. We still have demand for any parcels of wheat on-farm and could look at parcels in the system too. Chickpeas have been trading into Narrabri at $430/mt delivered and would look at any offers for July/August delivery.
New crop sellers are pretty scarce at the moment but may come to the table should we see a reasonable weather event next week. We have some demand for high protein wheat into Narrabri for July delivery. 70/10 values delivered Downs are still around $330-335/mt and we did trade a parcel around Narrabri this week at $300XF for July pick-up.
New crop barley enquiries have picked-up slightly and we have seen barley trade this week for harvest pick-up.
Sorghum values have dropped this week and are between $270-276/mt delivered Newcastle for August/September delivery. We also have Tamworth homes and export demand into Narrabri in the mid-$260’s delivered.