Last night grains closed higher for a number of reasons. Conflict between Russia/Ukraine creating concerns over supply, feed quality coming out of France, a downgrade in Canada’s crops, increased demand and specs holding large short positions have all attributed to overnight gains. Whilst the corn prospects in the US are still weighing on the market, corn did manage to push slightly higher overnight, mostly led by strength in other grains.
This week we have seen new crop numbers soften on wheat. Delivered Downs values have come back from $315/mt to $302/mt. Track values haven’t shifted much. Newcastle generic track are between $280-285/mt and NNSW sites are still being priced off a delivered Brisbane zone and are as high as $325/mt Ntl track, depending on the site. Brisbane track has been as high as $317/mt for APW on a Multigrade contract. It is durum that is really turning heads at the moment. With values above $400/mt track and a $50/mt discount to DR3, most growers are achieving a price above $300 at site for DR3. There is no doubt these are great prices. Domestic millers are currently sitting out of the new crop durum market. There are a few growers biting the bullet and committing new crop at these values whilst others are looking for a fall of rain for production certainty before committing physical.
There is a chance of rain tomorrow and Saturday but I don’t think we can expect to see the 25-50mm that would be ideal right now. Another 10mm would keep winter crops ticking along until the next fall.
Mungbeans remain firm with no real change to prices from Tuesday. Current 2015 cotton prices, combined with water uncertainty has got a few growers considering alternate options for their 14/15 summer crop program. Cotton, corn, sorghum or mungbeans? The next few weeks of weather and prices will most likely be the determinant as early seed orders for cotton will be up.
We have sorghum demand delivered Brisbane for September around $300/mt. Old crop chickpeas on-farm around North Star at $420XF for August pick-up. We are still offering GMP (Guaranteed Minimum Price) contracts for 2015 cotton. Please give Erin or Steve a call in the office to discuss any grains, oilseeds or cotton parcels. We can give you a range of options for deliveries/contracts and remember we don’t charge you, the grower, any brokerage!