Overnight wheat, corn and soybeans all ended the session lower. The USDA’s weekly crop progress report noted that the US Spring wheat crop’s good to excellent rating was below the 5 year average and at the bottom end of the 5 year range. Corn good to excellent rating was 73%, up 1% from last week. Soybeans were down 1% to 70%. Frosts in Canada are not expected to damage the canola crops at this stage but they would like to see another 2 weeks of no frost to escape production losses before winter sets in.
On the wheat front, internationally, wheat is not wheat and we may see some support for Aussie basis and Milling grades as we approach harvest. With quality downgrades internationally, we may see strength in milling grade premiums. This is yet to filter into our new crop pricing. Locally, wheat is wheat and with a downsized crop in northern NSW and southern Qld, we will see a large portion of grain move into domestic markets.
We have been receiving a lot of calls from growers wanting to know what to do with their grain this year. We are happy to do a comparison for you to see what the best plan of attack is with regard to storage/marketing grain and where the best return will be. Ideally, each of you would be a ‘mini GrainCorp’ on-farm and have the ability to store all your grain and test each load. The reality is, a lot don’t. We can, however give you a better understanding of where this grain can go if you need to send a surplus off-farm. If you are west of Narrabri, and it’s roughly the same distance from Narrabri or Moree, you could be better off to swing grain to Moree. If you have high protein wheat, it will probably be best sold into a packer as there are generally premiums for this.
As we get closer to harvest, we will explore these options in more details and in the meantime, if you have any queries, please don’t hesitate to call us.