The grains market remains jittery, with wheat regaining most of Friday nights losses, corn coming under fire from the USDA outlook conference and soybeans driving higher on the back of the export restriction expected in Brazil following a ship loader breakdown at the second biggest port in the country. The US remains focused on the continued freezing weather affecting their developing wheat crop, whilst reductions in Canadian area for 2014 production, has been meet by already record carryout in Canada, and an ABARE increases in 13/14 production of Aussie wheat by 500kmt. Corn prices where supported by last weeks export inspections, but with acreage for next year forecast around the 92-93 million acres, supply looks set to grow into the new season. Soybeans suffered some further cancellations from China switching to South American beans, but with prompt movement out of Brazil being disrupted, these sales could well switch back to US origin beans.
The cotton market finally broke thru the elusive 90 USc/lb mark for the May contract, in an evening sessions which traded a wide 253 pts. With first notice day for the March contract overnight, a sufficient 252k certified bales exist to fill the 62,500 bales worth of open interest.
The Aussie dollar seems to be treading water, with the 89-90 cent mark against the US dollar considered fair value in the current environment.
The domestic grain market wasn’t shaken up to much by last weeks weather events, and prices for wheat and barley have remained reasonably firm. The darling downs looks to be catching the Brisbane market zone, and the rumour mill suggesting that someone from the trade may have chartered a cargo from the cheaper southern port zones around to Brisbane, but it remains to be confirmed for now. Sorghum harvest on the Downs seems to be better than expected, whilst there isn’t much left to harvest north of Narrabri, prices have remained reasonably firm, whilst the off grades are still providing a little difficult to handle in big parcels. The pulse market has continued to see prices holding reasonably firm around the $440+ Downs, $425 Narrabri, but the delivery period continues to push out!