With the Thanksgiving Holiday this weekend in the United States futures markets have closed. Wheat has been showing signs of strength with steady exports, while corn appears that it has hit its bottom with the US being competitive in export markets. The big mover impacting domestic values this week has been the fall in the Aussie dollar, currently holding below 0.91. This helps in making Aussie stocks more competitive into export destinations. Commentators are looking toward a possible tapering of the US QE program before the end of the year which should continue to pressure dollar values further. As you have probably heard already today, the Federal Government has rejected ADM’s $3.4 billion takeover bid for Graincorp. This will allow significant agricultural infrastructure, including 7 export terminals and 280 up country receival sites, to remain in Australian hands.
With the close of the futures markets in the US domestic values will see little change today. A reminder for growers in the north who took grain in to the system in October that warehousing fees will commence for any stocks still owned this weekend. This week has seen an increase in demand for DR1 in the system, while we have homes for stocks on farm for movement in to Queensland. We also have strong bids for wheat stocks in the system, in particular APW and ASW, along with APH, AUH and HPS in certain sites. For stocks on farm, we have strong bids for high protein wheat delivered in to Narrabri packers, with APH2 starting at $300, or can take high protein wheat for movement into Qld, with APH1 at $325 delivered Downs. 70/10 markets have been holding steady. For stocks on the plains we would be bidding $277 delivered to Tamworth, for stocks in the North we are looking at $270+ around Moree. Chickpeas is another commodity which has had a resurgence in demand of late, with prices in to Narrabri, Goondiwindi or Dubbo pushing up to $400. For stocks on farm in the north of NSW we have prompt demand at $380+ around Moree. F1 barley values have been holding steady, with most homes now pushing out to January pick up. Values in the north are around $250 on farm, while Liverpool Plains are looking at around $240 for deferred pick up.
We have strong interest in new crop sorghum. Widespread rains over the last month has seen many growers get enough moisture to commence sowing, while crop already in the ground has also benefitted. Ex farm values on the Liverpool Plains are currently around $240. Growers with crop already in the ground in North of NSW would also achieve around $240+ as an on farm value today. Track prices have pushed above $280. Please call the office with any enquiries.