Temperatures have eased somewhat this week and a few showers have been seen in the area, as we enter the last watering stages for most cotton producers, with picking not too far away. Markets have been fairly benign, although week on week we have ended higher for all Ags on the futures market. This has been supressed by the fact that at times we have seen the Australian dollar rallying over US$0.76, and currently sitting at US$0.7555 at the time of writing.
Sorghum demand and prices have increased this week, $195/mt delivered Narrabri and $230 NTP NTL was bid on Wednesday, but many growers are still reluctant to engage. Sorghum delivered Newcastle is bid at $230/mt, meaning that many growers on the LPP are able to get $200/mt ex farm. There is still no news of any export demand, meaning that the majority of sorghum is being used in the domestic feed markets. Speaking with the end users the AgVantage team have come to the conclusion that they seem very well covered and prompt homes will disappear as we move forward. F1 barley and SFW wheat have been well and truly flat, buyers don’t seem too interested in looking at parcels and if they do, the majority of growers seem content to sit. Growers shouldn’t be forced sellers and should still look to take spikes in the market. Especially APH1 ex farm, there have been spikes in that market that are worthy of capturing. Old crop chickpeas are continuing to sell for record levels, with new crop peas rallying again this week, even on the back of a higher Australian dollar. Delivered packer for October has risen to $800+ once again, as out of season rains affect Indian chickpea harvest.
Faba bean market remains lacking export buyer interest for both old and new crop. Buyer interest remains for domestic feed interest, with the current weather conditions increasing feed buyer inquiry.
Cotton values have picked up a little, with bids over $420 in the market mid week. Growers are close to picking and may be forced to sell.