True to recent volatility, last night wheat and corn were sold off throughout the session. May wheat futures fell 11.5 cents and closed at 696.75cents/bushel. The drivers behind this move was rain received in two large wheat producing states in the US, Texas and Oklahoma. Aussie weather is also making news internationally with rain being received this week. Locally, the trade know that further significant falls are needed as we head into our planting window. Corn was down 2 cents and the May contract finished at 484.5cents/bushel. No real news in the corn camp. overnight and a narrow trading range resulted. Soybeans rallied overnight and closed at 1440cents/bushel, up 12 cents on the May contract.

Our Dollar traded higher overnight and this morning was trading at .9224

Cotton took a dive last night, after a massive trading range in the overnight session. The May 2014 contract has a trading range of 652 points and closed down 245 points at 91.66US cents/pound. We still believe that at these levels, mill demand is minimal as yarn prices have not lifted in-line with cotton futures. The July/Dec spread after last night’s close is currently at 12 cents. As a result of this backwardation, ECOM will discount any bales delivered post-24 June at the market spread at the time. If the inverse fades and we see carry emerge in the July/Dec spread, growers will also achieve this. Today’s ECOM price is $515/bale, down from yesterday’s $530

The chickpea market seems to have gone quiet again after the recent spike. Today, values are around $470/mt delivered Dalby and $425XF Cryon/Rowena for May delivery. We are also able to look at parcels of 2012/2013 season peas that are still on-hand. If the colour and specs are good quality, there seems to be a minimal discount to current crop. We would, however, need to see a sample of these prior to negotiating a price, as the appearance of chickpeas is a very strong indicator of price.

This week most of our conversations have been focused around the rain we have been receiving across the region. For most, it’s a good start and we have seen or heard the following recorded over the past week; 25mm at Rowena, Burren Junction 81mm, Merah North 77mm, Edgeroi 82mm, Bellata ranged from 56-87mm, Narrabri 110-128mm and east of Narrabri (towards Maules creek has ranged from 93-153mm), Boggabri 87mm, Morvenvale at Rowena 54mm. Interestingly, the Morvenvale weather station also has moisture reader capability at various depths and was installed in early August 2013. During the very early hours of this morning, for the first time since it’s installation, it has picked up a soil moisture reading at a depth of 6 inches! This soaking rain is starting to build profiles, but we understand there is still a long way to go to ‘break the drought’. I (Erin) was speaking to my in-laws last night who were previously from Wee Waa but now live at Yeppoon in Qld. They were complaining about how wet it was up there and how they could send some of the rain received down here. I was wondering what their fuss was about and this morning I looked up their readings…. To my amazement Yeppoon has received over 21 inches of rain in the past 7 days!!! Lets hope we do get some of that down this way too.

With the widespread rain this week falling across most of the east coast, prices have softened across the feedgrain complex and bids are softer this week. Wheat delivered Downs late last week was pushing $375/mt delivered and today it’s back around $353. Barley is again priced out of the market as the spread to wheat is less than $10 and most consumers stepping away. Traders may still have positions on into destination and are still bidding $343 delivered Downs, but at these levels, consumer demand is non-existent. Sorghum values have also softened slightly, today at $340 delivered Brisbane and $314 delivered Newcastle.

Last year AgVantage had an exclusive arrangement with Blue Ribbon Seeds to accumulate mung beans on their behalf. With the competitive nature of this industry, and the small crop this year, we have been approached by a number of other buyers to purchase on their behalf and have agreed to do so. Mung bean values have remained strong over the past few weeks and there is still demand for Aussie mung beans internationally. Quality reports so far have been pretty good, with most samples falling into the Processing quality. Heat has affected the seed coats and we have seen some wrinkly coats as a result, however these have still made Processing quality. Our delivery destinations are Goondiwindi and Dalby and for anyone with mung beans on the Liverpool Plains or Narrabri region, don’t be afraid to check out these homes, as prices have been comparable in years gone by.