Finally we can report some good news on the wheat front, Chicago wheat futures have rallied strongly in the past 3 sessions and the May contract closed above US$5/bushel for the first time since the middle of December 2015. Although we haven’t seen the full extent of the futures rally passed on to Australian cash prices, as the AUD has risen over 2 cents for the same period, capping the amount Australian growers have been bid. Now we must stress there has been NO fundamental news to support this rally, as we have stated previously the funds are net short and the past couple of sessions have been completely speculative, based on covering the net short position held by the funds. This does show a good opportunity to sell into a spike, numbers are expected to be $5/mt higher today and about $15/mt higher for the week. If your price target has been met then you should look to capitalise on this market movement.
Cotton has also bounced this week with May futures rallying to over US$6.40/pound overnight, the highest we have seen that contract since the start of January. Very timely news for growers looking to get their ginning done in the next few weeks. Growers looking to capture these overnight prices should be putting orders in with us and they will automatically get locked in once the price target is reached. $450/bale is currently a good point to be locking these orders in.
Domestically feed demand is still lacking, the trade seems to be buying hand to mouth, and this is generally for smaller tonnages. Barley has been a strong performer showing a $10/mt premium than last week. SFW1 wheat remains sluggish, many growers having price ideas much higher than where bids currently are. APH1 is strongly sought after ex farm
Chickpeas have been very strong, with $100/mt gains for new crop over the past fortnight. Growers can expect to lock peas in at over $900/mt for fixed tonnage and in the low to mid $800s/mt for hectare contracts. There are a variety of options available so please contact to discuss.