The ongoing saga of government services shutdown in the US has entered its second week, with the deadline of the 17th October fast approaching. This is the date in which congress must agree to increase their debt ceiling, otherwise default on Treasury debts, an eventuality which commentators are saying would be catastrophic to the global economy. Ag futures have been impacted in the form of a lack of information reaching the market which the USDA would usually administer. The monthly WASDE report, historically a major market mover, which was due to be released this week has now been postponed, while there has been no release of weekly export inspection data. The latter has resulted in the market trading on rumors, with an increase in corn futures overnight based on ideas that China has swooped in to buy large quantities of US corn, however exactly how much is unconfirmed. This is the first reversal for corn markets in some time in what has been largely a bearish market, with harvest continuing at a rapid pace and yield reports much better than expected, and in some areas as good as they have ever been. Harvest pressure is also contributing to softness in soybean markets, along with a massive Canadian canola crop coming off. Wheat has been the strongest performer of the ags despite softening overnight, with strong demand underpinning prices. Reports of an Egyptian tender for wheat after close of trade last night should see wheat futures regain any lost ground.
Harvest continues in North of NSW and Qld, with fabas coming off over the last fortnight, along with canola and barley which have begun to come off. Some wheat will begin to come off as early as this weekend, with the run of hot and dry weather bringing harvest in a good week earlier than usual. Faba beans have had a sharp drop off over the last week. The shift in prices has been export driven, with DCT markets falling due to buyers being unable to find destinations willing to pay at prices around $400 in to packers. The danger in the short term for growers is that while there is a shortage of stocks in the north, buying focus will soon turn to the South when this crop comes on line to source beans. Chickpea prices are also failing to inspire any selling from growers. AgVantage is able to offer a warehousing option in to Agripark Moree, which will allow you to store chickpeas and fabas without having them contracted to a buyer prior to delivery. Please call the office with any enquiries.