Cotton fell heavily overnight and fundamentals are still bearish. From a historical perspective, futures at current levels aren’t too bad and if your view is we have more to gain from a declining AUD, ECOM are offering USD contracts whereby you can fix currency prior to bales allocated against the contract. Our price today is $470 for 2013 crop and $465 for 2014. ECOM are happy to look at balance of crop –type contracts for 2013 season.
Sorghum continues to remain strong with $300+ delivered Narrabri today. We are becoming limited with the amount of high moisture we can take into Narrabri as there is a lack of in-spec grain being delivered to maintain stack averages. Access to dryers is very limited and will very quickly become an issue for growers who are still unable to harvest due to continuing high moisture. Small falls of rain this week have only further stalled harvest, especially north of Narrabri. We do have demand for sorghum up to 14.5% moisture from the LPP region, please contact us if you are interested in pricing.
Old crop faba bean demand is minimal due to lack of stocks. New crop values are still around $340-350XF depending on location. This is for No 2 faba beans or better and feeding into the domestic market. These prices are baffling export traders as the delivered packer value for No 1 quality is at or below these prices with a $15-20/mt discount for No 2 quality.
New crop wheat has been of interest over the past two weeks with reasonable buyer demand and some grower selling as values have steadied around $288-292/mt track. We have a variety of contracts available and we will do a comparison of products and determine what is best suited to your requirements. For example, NNSW/border region growers may focus on APW/ASW spreads and possibly earlier delivery periods, others will focus more on an APH spread, quicker payment terms or the discount to feed. We have the ability to fix spreads or leave them floating, we can also fix a price at site so if GTA location differentials change for the 2013/2014 season you will not be affected. Some counterparties are also paying premiums for certain sites, so before making a decision, please call us.