Futures were mixed last night with wheat slightly higher, with an outlook for harvest to really get going in the Northern Plains over the weekend. Corn was off slightly, and beans closed up a few cents. The big mover overnight was our Dollar. It dropped over 1 cent last night and today is trading around 0.8967USD.
With faba bean harvest around the corner, we have a number of marketing options available. We have destinations into the Downs, Allora, Goondi, Moree, Narrabri and Dubbo.
Current feedback is that the UK & French beans are being offered into Egypt at values well below Aussie prices. This is putting pressure on the Doza variety in particular, but also Aussie faba beans in general. Due to the size of the crop this year, and export values, the domestic market won’t be a large aggressor so in the past we have been able to contract No2 or better on-farm, this may not be the case this season. Export values are stronger than what the domestic market can pay for them.
Earlier this week we contracted new crop at $428/mt delivered Narrabri for No1 quality and a $20/mt discount to No2’s. Today, that price has softened slightly and is at $423/mt.
Old crop wheat values continue to slide as September shorts are filled and demand moves to Oct/Nov/Dec slots. With these shorts filling, the old crop premiums are disappearing and quickly moving toward new crop values, which have also declined in the past week. Today new crop is being bid sub $300/mt delivered Downs and $265-270/mt delivered Tamworth/LPP.
Durum is the star performer at the moment, with well over $400/mt site for LPP sites and $400/mt or better at Bellata/Edgeroi.