Grain futures had a largely uneventful night, with wheat, corn and soybeans all making slight gains. The same factors of the last few weeks continue to limit major movements in either direction for these commodities. Wheat is well supported with production issues in South America and strong global demand. The corn harvest in the US continues to show stronger than expected yields which is pressuring this market, while soybeans have a record Canadian canola crop to contend with, while the US soybean crop also appears better than expected. The market is awaiting the release of the backlog of export data before the end of the month, which ceased being released following the US government shutdown, with thoughts that large scale purchases had been taking place over the last few weeks. The Aussie dollar had a sharp drop of over 1c, coming off a high of 0.975 to hold this morning at 0.963 which should also support Aussie cash prices. After the commotion in the US recently global markets attention shifted to China, where there are concerns over the Peoples Bank of China recently increasing short term interest rates. Cotton markets are sensitive to macro economic fluctuations, with a sharp drop in futures on the back of the Chinese news.
Short lived storms across the north caused a brief interruption to harvest but with barely 2ml being recorded headers will be back in crops today. Wheat has been coming off now since last week in Northern NSW, with early reports of high protein, with some growers facing screenings between 5-10 but not what would be called a widespread issue at this point. What is consistent across the region is that yield has suffered this season as a result of the sustained dry and windy weather, with some crops also being affected from frost. Prices for delivery in to packers are at a clear advantage over what can be received as APH2 in the system. Prices of above $290 for APH2 in to Narrabri, Moree or Goondiwindi are significantly better than prices in the $270s for APH2 in Graincorp sites, while packers also offer premiums for higher protein. Prices for feed grades are also holding firm with homes available for prompt movement, North of Moree 70/10 values have been around $265 ex farm. F1 barley prices have had a slight improvement recently in to northern markets, with $240 ex farm achievable north of Moree, while northern Graincorp sites are trading at the same levels as Brisbane track. Canola prices have failed to make any substantial moves recently, holding around $500 Newcastle Track. We are able to offer ex farm option on a flat priced basis for growers currently holding stock on farm. Pulse markets have quietened of late, with faba beans coming off their high prices of early in the season to now hold around $350 delivered in to packers. Chickpeas on the other hand continue to show no life, with some growers biting the bullet and offloading stocks.
A reminder that AgVantage have made available warehousing of chickpeas and faba beans at Agripark Moree. We also have grain cleaners available for hire or purchase. If you are experiencing dirt, screenings or weed seeds in grain, please contact us to discuss. We have sold a number of these already to growers who have had admix and green pods in canola, splits, dirt and weed seeds in chickpeas and also to one of our buyer clients to ensure they have in-spec product for their customers.