Overnight market traded lower, with profit taking in the row crop contracts pulling all 3 Chicago markets lower. Soybeans struggled with technical profit taking after the November contract broke down through the $12/bushel mark on an improved outlook for a rebound in supplies come the end of the year. Corn lost ground with export pace slowing, and an improved outlook for both US and Brazilian corn. Wheat followed suit, winter kill is still in the minds of most, but with maturity well behind, this could be masking or limiting damage. No one will really know until the pull the header out of the shed and start taking a bite into their harvest.
Cotton bucked the trend of the other major commodities showing limited gains. Volume was light ahead of first notice day on Wednesday (US) with most of the action already out of the way and everyone now on board the July contract, and the market paying full carry for the almost 500k of certified stocks. US planting remained behind the 5 year planting pace on limited moisture in most growing states. Mill interest continues to be limited for prompt/hand to mouth use, above the 85 USc/lb contract price.
The domestic feed grain market has kept the prices for ASW/70-10/Sorghum and Barley relatively firm whilst the US grain markets seemly moved around with limited clear direction. We have prompt demand for sorghum into Narrabri, along with delivered Newcastle, ASW/70-10 ex-farm and delivered in the track system or to the Liverpool Plains. Milling grades of wheat have been a little quieter, but reasonable prices are still floating around. New crop APW prices are being posted around the $270 port, but we are far from being inundated with enquiry about selling new crop with planting still yet to get a started for most.
The pulse market continues to sit around the $500/MT delivered Dubbo & $480’s/MT delivered Narrabri. With growers continuing to sell at these levels, it is keeping a lid on the prices moving any higher. New crop hectare contracts are out and about at $450 – $460/MT delivered Darling Downs locations, but the crop is still a long way from being put in the ground. Given the large number of tonnes of old crop held on farm, and the good conditions in Central Queensland these numbers should be considered . Domestic demand for faba beans has slipped away, new crop pricing is still not highly liquid as we get closer to the end of the planting window.