Fact of the Day – If the U.S. was to cut its military budget by 75%, it would still have the world’s largest military budget.
The week started off slow as the US markets had the Monday off to celebrate President’s day. Over the last few days there has been positive signs as continued negotiations across the Pacific make progress, the two agreed on making currencies more stable. Though this seems like it will only be another task on the to do list to renegotiate as time goes on. With this news, we saw the Aussie dollar climb due to our own international interests with China. The dollar sits at $0.718 to start the day.
With the weather forecast reporting subdued temperatures to end the week, there is still nothing promising to fall over the next fortnight. Though all eyes are on the tropical cyclone for now, as it could very well turn and provide some decent moisture across SQ and NNSW, fingers crossed. Feed is still sought after from every corner of the eastern states, vessels also continue to make their way around from the west as the costs to consumers continue to tick over. Sorghum has rallied over the past few days with buyers looking to take tonnes in every direction across the state and still only being able to source it from the north, at this stage. We expect the plains to get started over the next 2 weeks, however how their yields and quality will compare to the northern crops will be interesting, as this will also play a part in domestic and port zone prizing going forward. Pulses have had little change this year, as we etch closer to Ramadan, it becomes more worrying that the overseas buying will not come till the post fasting period in mid-June. At the moment, there is many factors contributing to their markets abroad and it leaves Australian exporters and sellers sweating on their tonnes needing/wanting to be moved.
As stated earlier, the public holiday gave the markets a slow start to the week of trading, though since then Cotton has edged slightly higher on current trade war news. Prices today for seasons ahead stand at 2019 $586, 2020 $585 and 2021 $545 (at time of writing).