There’s little to report from the overnight markets, with the US closed for yet another Public Holiday! The wheat market is continuing to react to the extended cold, affecting the majority the growing region of the US, getting back over the 600 USc/bu level which most expected would form a good deal of resistance. The price rally in the US is seeing other origin wheats, namely those from the Black Sea region, look more competitive into a number of tenders. The corn market has followed wheat for the most part, but there are moves afoot , for the prohibiting of GM Corn by several merchants due to the continued issues in China, and France as a country are also looking to ban GM corn altogether. Soybeans look set to continue lower as the US crop is replaced by the cheaper South American crop. Soybean crushing was down over the month of January, and one should expect the same again in February, with from the delays in the logistics of delivering grain from elevators to crushing plants due to the continuing cold in the US.
The cotton market continues to hold around the top of the recent range, with the majority of the fund managers finished the rolling of contracts to the May contract, the focus will be dropping away from the March contract as we close in on first notice day. Cert stocks have continued to grow, and it is highly doubtful that many fireworks will come as the March contract comes to a conclusion.
Our dollar has continued to hold ground above the .9000 cent level, a number of key events over the course of the week will hopefully see some pressure placed on currency. The US Federal Reserve head into the next round of meetings on Thursday (US time), to discuss the continuation of the tapering of US Bond buying. The RBA meeting minutes are also being released today, which may give a insight into what our currency leaders are thinking.
The forecast for what will hopefully be a significant rainfall event over the next 48 – 72 hours, has seen the local grain markets lose a few dollars in anticipation. Sorghum has come under pressure from the Central Queensland crop which is continuing to be planted, whilst he continue with harvest north of Narrabri. The off grades of sorghum (2/3/X/S and that which is undeliverable) continue to be difficult to move. The barley market has firmed with feedlots remaining on the white grain ration (wheat/barley) given they cannot source sufficient good quality Sorghum1 to warrant bringing it into their feedlots. The pulse market remains subdued, with the demand side having stepped away from the market place for now.