Fact of the Day – A cave in France has the footprints of an 8 to 10-year-old boy left in the mud 26,000 years ago alongside the paw prints of either a wolf or a large dog, this is the oldest evidence of human/canine relationships ever found.
August looms with now only six weeks remaining of winter, and with how the season is progressing spring is still looking to do anything but its traditional role. Looking overseas, if anyone was watching the World Cup Final other than the French celebrating, you would have noticed the torrential rain being cast over Moscow and the prime growing areas of Russia and the Ukraine. This belated weather event has cast some shadow over how the old soviet nations quality will fair come harvest time this season. The overseas markets including the CBOT and ICE have catered to the USDA’s WASDE report on the downgrading global Wheat production. The estimates cut about 8.5 million tonnes with majority being the EU followed by Russia, with Australia’s production output being dropped by 2 million tonnes. Now as this is only a forecast, it still has a degree of confidence when looking at the climatic conditions being faced across the southern and northern hemispheres. In regards to the ongoing trade war between the two superpowers, not much more has eventuated, though all markets are keeping one eye on its progress throughout the week (especially after Trump and Putin had a sit down in Helsinki). The Aussie dollar against the greenback has dropped by half a cent and opened today at $0.737
Spot loads continue to drive current demand with Wheat, Oats, Fabas, Corn and Barley being of main focus for feed rationing for stock. Barley is wanted but not as much as seller prices indicate, hence other feed grain avenues being much more prevalently followed. With the Darling Downs supply quite healthy from the port deliveries (considering the current weather and feed situation), this was only a short term fix. Feed Wheat and Barley delivered Downs and XF still is bid around the $400 level, though local feedlots are chasing cover for the remainder of winter and providing premium bids to secure tonnes sooner rather than later. Across the North West, demand for graziers inventory is becoming harder to source without spending a little more coin week in week out and the outlook is of course not promising as usual. On the pulse front no change for Chickpeas, with old and new crop set at $630/mt in to Narrabri and the Downs with a $10-20 discount out of warehousing. $500 ex-farm is still the minimum price sellers will take for feed Fabas with delivered prices increasing dependant on location.
The most recent USDA report has decreased the forecast for US production this year, this has given the Cotton futures a boost across the board. Weather concerns in the Texas panhandle and Australian growing areas also continue to play its role in where merchants are setting their basis. This week pricing has jumped at an amount of $15-20 for the next two seasons, with less interest beyond 2020. Today’s prices, $640 for 2018, $650 2019, $610 2020 and $530/bale for 2021 and 2022(at time of writing).