Grain futures continue to come under pressure due to a strengthening US dollar, making more expensive on the international marketplace. Pressure may also have come from much needed rain falling across parts of the Ukraine and southern Russia yesterday. The US Department of Agriculture is forecasting a record global wheat crop this year, due to an increase in plantings in all major wheat producing countries however on the domestic front we have seen further strengthening and a tightening of spreads across all grades of wheat as dry conditions persist and a negative outlook for prospective plantings for this years crop tighten supply of last years stocks pushing prices higher. This market is clearly weather driven and looks to remain firm as long as the dry run continues.
Cotton futures remain volatile falling three times in four sessions as mounting concerns that global supplies will be more than sufficient to meet demand, global inventories of cotton will climb 9.4% from last year to a record 92.74 million bales according to the US Department of Agriculture. July cotton futures in New York fell 42 points overnight to settle at 86.0c/pound. Domestic cash prices have been firm aided by a three cent fall in the Aussie dollar and basis remains steady and around 270 points on leading to a respectable $450 cash price.
Local demand for sorghum and all grades of wheat have been strong into the domestic feed markets with $265 for sorghum delivered into Narrabri and around $250 ex farm for Bellata. We have demand for sorghum XF Mullaley/Tambar/Premer at $255-260XF and have the ability to take SOR2 or high moisture sorghum as well. Sorghum delivered Brisbane values are also very strong and are around $310-315 delivered. There also has been some very strong Newcastle track numbers for ASW with bids ranging from $300-320 for specific sites. We also have strong numbers for any stocks currently held in the system both Brisbane and Newcastle lines. Similarly we are buyers of all grades of wheat XF and in the system. Also please enquire with the office for any mungbean pricing at the moment.