With the futures markets in the US taking the session off to celebrate Martin Luther King Jr day, there is little to report from the US. Internationally, Aussie wheat was the best price for a recent Iraqi tender of some 450kmt, with this grain being offer from the southern states with exportable surpluses, over the domestically driven Newcastle and Brisbane port zones. Argentine corn growing states have been receiving weather similar to ours of the last few days, and this is thought to be putting a great deal of stress on the crop. Brazilian soybeans are swinging into harvest, but sales from the South American countries have been well behind, previous years as China continues to buy freight advantaged, and logistically easier US beans.
The cotton market has broken out of the 81-85 USc range that we had held for the last couple of months, as US cotton begins to sell out, and high quality machine picked cotton becomes harder to source. The speculators have taken the upper hand, with mill demand dwindling above the 85 USc/lb mark.
The Aussie dollar made a new market low yesterday, but has since regained some strength from the better than expected data out of china yesterday which was out currency break back above 88 cents. Our 4th Quarter CPI data is out later in the week, and is the next big thing for the RBA to consider as we close in on the first rates meeting of the year.
The feed market has continued to look for grain, and prices are slowly coming up daily to meet the next grower selling target. We have traded wheat in Graincorp Moree this morning at $300, and our buyers are happy to entertain offers from growers that are looking to sell. Barley continues to hold its ground around the $300 farm Moree, whilst we have traded barley in the central west at around the $265-$270 level. Sorghum harvest is still slowly getting underway, quality remains the biggest concern for the majority of growers, with very little Sorghum1 being harvested early on. We have been working with our buyers to places off grade sorghum, discounts in the market for Sorghum2 are between $18 & $25/t depending on destination. Our other big interest at the moment is for chickpeas, we have buyers looking to book tonnes into all the packers, Dubbo, Moree and Narrabri around $420 through to the Downs $450 and Brisbane on application, and we are keen to hear from anyone interested in selling.