The wheat and corn markets remain pressured by the healthy international supply for the 13/14 season, whilst the oilseed market gained on continuing strength in export demand and domestic crush requirements in the US. Canola has hopefully stemmed the losses of the last few sessions on the back of the stronger soybean market. Basis for Aussie wheat should remain firm, with our wheat recent priced into an Iraqi tender at $20 cheaper than US and Canadian origin grain. The corn market remains pressured by the Chinese cargo saga, and the US senate discussions with regards to the ethanol mandate.
Cotton put on a handful of points on the front month, but the gains on the May and July contracts have decreased the invert from the March contract. The most notable invert is the July to December now at some 559 points or approx $30/bale, later delivered bales may have some discount caveats built into these purchases. China also made some import tariff changes , making the importing of cotton directly by mills more difficult, and significantly more expensive than the current prices which would be being offered.
The Aussie dollar is poised at the 0.8950 level for the information from the US Fed meeting to be released on Thursday morning, to give the most clear direction for our currency. The December RBA meeting minutes will be released this afternoon, but its doubtful that many surprises will be in there today.
The domestic market has remained strong, with good numbers being bid for grain in the system as well as ex-farm. North of Moree has seen $280 and better for the 70/10 market, whilst barley on farm and in the system is also attracting some attention in the marketplace for those still holding onto tonnes . The durum market remains at the strongest numbers for the season, and we would welcome the chance to make an offer on your behalf to our buyers. The sorghum market has held onto the $300+ numbers delivered Newcastle and Brisbane market zones, helped by stronger basis and the fall in the dollar. With the second plant window open for growers north of Narrabri, more hectares could be going in if we receive some reasonable rainfall events, but that crop will be late, and have to compete against sorghum out of Central Queensland..