Wheat futures overnight were up strongly with fund buying the main reason but the bulls are also being fed by the winter crop concerns in the Ukraine and US. The May contract finished up 24.75 cents at 683.75US cents/bushel. Corn was also stronger, being lifted by wheat, and the May contract finished up 5.25cents and finished at 488.5 cents/bushel. Soybeans got hammered in overnight trade and fell heavily as the market is reacting to China’s continuing delays and cancellations of cargoes. May beans closed down 26 cents, at 1387 cents/bushel.
Domestically, feed values remain supported. We are seeing delivered Downs numbers for wheat between $360-365/mt delivered, mostly for April delivery. With the wheat/barley spread widening again this week, there is demand for barley. Only a week ago we were reporting that barley was overpriced in rations but with a kick in wheat prices, barley demand has returned. Faba beans into the domestic market traded a week or two ago at $430-440XF Narrabri. We do have some small demand at these levels. On the sorghum front, we have buying demand for SOR1 in all areas, both in the system and on-farm as well as SOR2 and SOR3 ex-farm or delivered Goondi.
Chickpeas this week have jumped considerably and from reports we are hearing it is mostly due to wet weather in the subcontinent. Yesterday we heard levels as high as $500 delivered Downs, however we believe this price was short-lived. This was mostly unachievable for the majority of buyers but one buyer did stick their neck out to accumulate some tonnes. Most other buyers are telling us they cannot make this figure work and last night’s offshore trades were the equivalent of $485-490 delivered Downs.
We still have access to the following stockfeed products; faba beans, corn and grape marc. We have a number of growers currently purchasing grape marc and corn as faba beans are still quite expensive compared to the alternatives.
Cotton overnight was up, May up 55 points and July up 15 points after choppy overnight trade. There seems to be little fresh news to spark this rally as generally during this time of year we see cotton compete with soybeans for acreage in the Southeast. A drop in soybeans prices would lead to a larger cotton planting, larger crop and lower cotton values. I expect we will see this emerge in the near-term but for now, it was the spec buying that led cotton higher overnight.