Grains were mixed overnight with May wheat up 0.25 cents after trading higher most of the day. Another freeze likely to spread across the western plains is causing some concern but due to maturation being well behind the usual pace there could be cosmetic damage not an outright kill. Damage from recent freezes won’t be realised for another 2-3 weeks. It is believed that wheat traded higher overnight due to short covering rather than new long positions. May corn closed down 2.75cents overnight and struggled to find support due to bull spreads, which supported new crop months. Continuing wet conditions will delay planting which did support the corn market. This issue pressured soybeans early and the November contract in particular, as any delay in corn planting could lead to an increase in soybean plantings. Beans were still trading lower through the mid session but exploded late to post 10.75 cent gains for the May contract. There is talk that this was mainly technically driven but also due to rumours that port workers in Brazil were going to strike but no confirmation of this.
Cotton posted gains of 100 points plus on both the May and July contracts. July closed up 123 points at 86.65cents/lb and as this is the month we are now pricing off, we have seen an $8/bale increase in price today. ECOM’s 2013 price today is $435/bale (subject to afternoon fluctuations in futures/currency). For anyone interested, we are bidding $431/bale today for 2014 crop and USD contracts are available also. Growers can elect to be paid into a US Dollar account if they have one or fix AUD at a later date, but must be fixed prior to being paid.
Sorghum is still sitting at similar levels to the past week. Track values are slightly higher today, XF and delivered Narrabri numbers are similar to yesterday. Sorghum traded this week at $231XF around Narrabri so please use the delivered numbers as a guide and if you have selling interest for prompt pick-up please bring us offers. We do have buyers working on May sales but at this stage it is difficult, as we explained in Tuesday’s report that locally, the wheat/sorg spread needs to widen for consumers to want sorghum and internationally, the US is providing our main customer Japan with cheaper product for June/July.
Demand remains strong for ASW in the system (only certain sites), APW and H2 Newcastle track, APW Brisbane track. We still have demand for AGP/ASW/70-10 wheat XF to work delivered LPP or XF. This week we have seen a jump in H2 values on a Newcastle track basis. Yesterday H2 traded at $292/mt Newcastle and APH was only $6/mt in front of this price. As a result, we saw growers selling H2 in the system.
We are still keen buyers of mungbeans both delivered Goondi and XF. Growers can commit a Multi-grade hectare contract (at the same values as fixed tonnage) with the following prices; Sprouting $1150/mt, No1 Processing $1025/mt, Processing $950/mt and Manufacturing $750/mt. There are grading/bagging costs to be deducted from this but please contact us if you wish to discuss in more detail.
Please keep in mind when comparing prices, AgVantage does NOT charge you, the grower, a commission. Any price we quote you is the price you receive. We can also complete online transfers on your behalf at your request, saving you time.
Some of you may have been experiencing some difficulties in viewing system stocks in the GrainTransact site recently. We have learned that this is due to upgrades from the Internet Explorer search engine. If you use Google Chrome or another engine (including iPhones or iPads) this does not occur. Apparently the upgrades have created incompatibility with GrainCorp’s online platform and they have technicians trying to rectify this.