Fact of the Day – Volcanoes, also known as mantle plumes are hotspots and found at a number of locations around the globe with the most notable being in Hawaii.The biggest known volcano in our solar system is on Mars and it measures a sizeable 600km wide and 21km high.
Planting across the region continues for very few growers with barley, chickpeas and wheat being just some of the winter crops going in with a side of hope. Moisture for some is still promising around the border area but for the majority, the window of opportunity is getting smaller by the week as forecasts continue to disappoint the whole eastern side of Australia. Europe looks to experience inconsistent showers with above average temperatures with the America’s facing much of the same with no real punch behind it. The Aussie dollar has been shifting following the current dryness across both hemispheres but still holds more strength on the greenback than it did last week, up a whole cent at $0.757.
Most grains have continued their bullish form over the past four to six weeks with the domestic demand so rampant due to the grim weather outlook past, present and future. Wheat in to Brisbane is stirring the $410/mt mark with the Darling Downs just trailing behind by ten dollars at $400/mt. Barley has held its own and sits comfortably on the $400 mark in to the Downs as well. Sorghum had a sharp fall on Friday with news that the US and China had eased back on the trade war and more specifically the supposed Sorghum dumping. With the market now much more open, the main driver for Australian Sorghum was the demand coming from China. Due to the recent agreement, track prices dropped by a rough amount of $10-15/mt, as well on delivered markets across the North West and Southern Downs.
Pulses are at opposite ends of the spectrum at the moment, Chickpeas continue their lull as Faba’s continue to jump up in price week by week. Chiccies do not really have any buying and/or selling interest at the moment, obviously with the fasting period and pilgrimage taking its effect on the market, even in the lead up we saw only brief interest from abroad. Pricing is still at the $600/mt mark for all old crop in Narrabri, Wee Waa, Trangie and Goondiwindi with $615 the high in to the Downs for June delivery. Though continued interest for new crop builds as the season uncertainty also climbs heading in to planting. On Faba beans, the sellers’ market still reigns as demand escalates even more so from traders, graziers and lot feeders, ex-farm pricing on recent trades stands between $450-60, May 2017 trades were just scraping $200 XF.
As the season is more than halfway through, there are still bales remaining for marketing and the interest is only becoming heightened. The markets much like the grain have been bullish over the past two weeks with both this season and next above $600/bale. Although the futures and exchange rate are teetering back and forth this still hasn’t slowed the demand for the years ahead. Prices for 2018 are now standing at $600, 2019 $600, 2020 $550, 2021 $530 and 2022 at $530/bale (at time of writing).