Global grain markets remain in sideways trade over the last week as participants try to determine what impacts (if any) the recent weather in the U.S has had on yields & quality. The AUD/USD has also been stubborn over the week reaching through $0.75.
Cotton has come off its highs of last week in AUD terms from $590 back to $550. New crop 2018 remains steady at $530 to $540 per bale. Cotton picking is still under way around our region which on average is late around these parts.
Yields have largely been disappointing but not surprising on the back of such a hot and dry summer. Growers are busy either planting winter crops, or praying for more rain with the current local soil moisture being mostly patchy at best across the region. If we are to see a broad planting across our region, we’ll need to see plenty more rain, otherwise, it could be a lean year. Whilst there is still time, the later the crop is planted, the greater the yield impact. Local prices have remained steady over the last week, apart from cotton already mentioned. Feed barley is still bid around $236 delivered Darling Downs. Feed quality wheat is bidding around $256 delivered Downs, which is similar to sorghum.
Current crop chickpeas are bringing $1,080 delivered Narrabri back $30 from earlier this week. DR1 is bringing $325 delivered NTP Newcastle, with Ex-Farm interest also subject to location. Faba Beans are steady around $200 Ex-Farm, with thin demand. There is good demand for all current crop feed grains & milling wheat. New crop wheat values are firm on the back of production uncertainty and lack of grower selling. SFW delivered Downs is bidding around $250 to $260 subject to delivery period. New crop multi grade APW NTP Newcastle is bidding around the $255 mark.