Fact of the Day – During the 2010 Christmas season, the Colombian government decorated jungle trees with lights. The trees lit up when the guerrillas (terrorists) walked by and banners appeared asking them to surrender their arms. The campaign convinced 331 guerrillas to re-enter society and also won an award for strategic marketing excellence.
Pandemonium, apocalypse like and chaotic is probably how you would best describe the last week of weather faced across most of Queensland and New South Wales. To start, central and NNSW faced a massive dust storm accompanied by winds clocked at over 100km/h which saw top soil head to NZ, though this did bring some heavy rain, with many receiving anywhere from 10mm to two inches. Throughout parts of the Darling Downs, they experienced up to 300mm (12 inches) in only a matter of hours on Sunday with FNQ copping more than double that thanks to tropical cyclone Owen. Now the scattered rain was better late than never, though how it has impacted summer crops, whether it be positive or negative will not be truly evident until we enter the New Year. This seasons also at many differing stages for most due to intervals of moisture and the increasing mercury over the past 2 months, we expect to see Sorghum coming off as early as Australia day, then from then on.
Due to such a short and dismal season, the usual supply for feed grains during harvest has dropped away considerably, though there is still plenty of demand for lot feeders and graziers looking to gain cover for January out to March. Due to recent rain, Sorghum prices have dropped away in anticipation for increased production, though Barley and Wheat are still quite strong as futures gained across the international market this week. With low east coast production, we still will look to the port prices of our Western Australian and international sellers. Protein wheat delivered NNSW is bid at $450 heading in to January with feed wheat at $435-40 and F1 $400 ex-farm depending location. With majority, if not all receival sites already running on a skeleton crew, we recommend checking with all buyers on their logistics over the festive season on whether they are open or closed over the holidays until 2019.
As commented on over the last few weeks, there is still really no immediate change in the Chickpea market. We hope to bring heightened prices and overseas demand in 2019 for the Downs/Narrabri market zones, warehoused and ex-farm old and new crop product. Stats show that in February and March we ship over 100kmt to Bangladesh, this is looking to be the same for 2019 due to poor conditions abroad. Cotton has dropped away this week on the market front, though we do not expect too much change until the US and China start behaving properly. Prices today for seasons ahead now stand at 2019 $605, 2020 $590 and $540/bale for 2021 and 2022 (at time of writing).
From all of us at AgVantage Commodities, we wish you a very Merry Christmas and a Happy New Year.