Global weather concerns ease as northern hemisphere winter crops near harvest and summer crop plantings near completion. Wet conditions that have plagued US winter harvest have eased with the HRW harvest at 11% completed, now ahead of last years pace. Weather related quality concerns have not surfaced, with higher yields adding to an average lower protein harvested to date. The increased harvest pace and forecast weather has pressured prices. EU weather conditions have improved and added weight to the falling values. The USDA WASDE report out last Friday reinforced the comfortable global stocks position, with the large carry to expand through 2017 with ending stocks rising 14mmt. US warmer weather had provided some support for firmer Corn futures values but has eased in up coming forecasts. US plantings are complete with crop ratings unchanged from last week and equal to last year. WASDE reported a lowering of global corn stocks by 1.32mmt, by way of usage outstripping production. End of month USDA planting report is expected to reduce corn area and increase soybean, which may provide support to the corn market. Soybeans have eased this week as weather concerns globally ease. WADE has 2017 ending stock reducing 5.89mmt with stocks to use ratio, still a healthy 20%. US plantings are at 92%, with crop ratings ahead of last year. Upward revisions of the US crop are expected on increased planted area in the end of month report. The condition of the northern hemisphere canola crops improved last week on favourable weather, easing supply conerns.
US cotton plantings advanced to 89%, as drier weather eases market concerns. Futures have eased and strength of the $A has contributed to lower local values with 2016 crop now below $470 and 2017 in the $470-$480 range.
Global financial markets have concerns on the pending UK vote on remaining in the EU, while US interest rate rises talk remain pending and Chinese data no inspiring any market direction.
Local markets have held steady to softer for both old and new crop wheat with sporadic spot demand for higher protein grades achieving firming values. Barley and sorghum bids are stronger for x farm and delivered markets up to $7 stronger with track bids $1-$2 firmer. Buyer interest has been keen for lower grade barley, with discounts to F1 narrowing. Chickpeas bids continued to firm over the week for new crop with $935 Newcastle port and delivered Namoi and Macintyre Valley packers at $920 delivered October – November, with December delivery discounts range $20-$30. Hectare contracts remain available at $80 discount to the fixed tonnage options.
Forecast major rain event leading into the week end appears to be of mixed fortunes, which may limit the full extent of plantings across the northern cropping region for this winter crop or at least delay plantings to the later end of the window.