Last night saw most major commodities take a hit other than beans. Markets are retreating from commodities and equities in favour of other investments. July wheat finished down 19c to 679c/bushel on favourable harvest pace and news of increased yields in the Eastern States of the US. Expectations that Kansas production could be up by as much as 20 million bushels and weaker European markets has added to downward pressure. Corn also finished down 8 ½ c to 653 ¼ c/bushel on more a favourable weather forecast and slowing outside markets with exports slowing this week to the slowest shipping in the past 5 months. Beans bucked the trend finishing up 18 ¾ c to 1512c/bushel with strong basis levels in processor markets and increased export inspections. Areas in the NW corn belt remain extremely wet, which could mean there is an increasing amount of acreage that will go unplanted added support to new crop.
Cotton futures overnight were down again. The December 13 contract fell 146 points and finished at 83.18 while May 14 dropped 106 points to settle at 82.50US cents/pound. The outlook for cotton futures through the trade desk is downside to 82 cents, however AUD forecast to fall into the 80 cent range in the next 4-6 weeks. On the back of this we feel growers should consider pricing in USD and fixing AUD on further downside. ECOM are currently looking at balance of crop contracts in the form of a fixed bale contract with 10% tolerance on deliveries for contracts less than 500 bales. BOC’s above 500 bales will be limited to a 5% tolerance. We are also looking at unfixed price agreements whereby growers can commit bales, have cotton ginned and allocated to a merchant and you have until 6th November to price these bales. We can also look at market orders, on a day order or a ‘Good Till Cancelled’ basis. For anyone wanting to discuss marketing alternatives for your cotton crop, please give us a call.
In other domestic news we have seen a slight softening in most grains, though feed wheat demand remains relatively strong holding up basis. New crop wheat prices have been +$280 NTL /BNE track but with recent losses in the market we have seen this drop into the mid $270’s. Sorghum remains in high demand with prices above $300 delivered Narrabri and $350 Delivered Brisbane. These prices represent good value considering the spread to ASW/APW is only $1. We continue to have homes for slightly out of spec Sorghum with regard moisture. Please call us to assist in finding you a solution.