Futures overnight were mixed. Wheat fell on the back of an increase in production estimates out of Russia overnight, and excellent conditions for the US spring wheat crop.
Dec wheat finished down 2 cents and closed at 557.75 cents/bushel. Corn was boosted overnight on a drier weather forecast although the crop conditions are certainly not of any concern at this point in time. Soybeans lifted overnight due to a dry weather forecast as 38% of the crop is setting pods. Although the crop is still in good shape, stocks remain tight and any concern or hiccup in production will send this market higher. The strength in beans pushed canola futures higher overnight.
Locally, we are seeing a continued decline in feed values in the north here. Wheat and barley are again lower this week. 70/10 wheat XF Moree region is between $280-285, depending on location. Barley is becoming harder to find homes for and demand for these grains is not as strong as a few weeks ago.
Crops are really struggling with the lack of recent rainfall. We are almost desperate to see a good 25-50mm rain to keep crops alive. Without this, we will probably see a quick deterioration in these already struggling crops.
As a result of production concerns we aren’t seeing a great deal of 2014/2015 selling. There has been some new crop durum sales in the past few weeks but for the most part while prices are holding, growers are reluctant to sell.
Mungbean hectare contracts are available for anyone looking at spring & summer crop options.
We are currently offering through ECOM Commodities a Guaranteed Minimum Priced contract for 2015, we have sent out a flyer recently and happy to discuss this product in more detail.