It was a down night for the markets in the US with wheat loosing ground on the spread to corn with key technical selling from the funds, and a bit of turmoil in the middle east, with Egypt changing to terms for any further purchases of international wheat, decreasing the maximum moisture acceptable from 13.5% to 13% which has some of its suppliers lobbying to stop the change. The funds got on board with that news to, market finished on the freshest of lows. The corn market is awaiting the decision on the ethanol mandate, whilst the soybean market is setting up for lower numbers with a Chinese buyer publicly reporting the purchase of 400kmt of Brazilian soybeans.
The cotton market picked up again overnight, with price fixations from the mills as expected below the 85 USc/lb level, with the market a 260pt range on the front month. The spread from July to December is continuing to widen, finishing at 950pts or approx $55Aud/bale. Ecom’s prices for cotton are $525 for 13/14 season & $467 for 14/15 season.
The currency market tried to break into the 0.86’s overnight, but was stopped just short on some technical support, but the decrease in US bond buying announced by the US Federal Reserve by another $10B/month to $65B/month on the back of improve economic outlook will place pressure on our currency.
The has been very little change to the domestic grains market this week, with prices remaining at levels from the start of the week. Domestic APW and H2 shorts are now filled, so the premium in the market will flick back to the value of the grain into the feed markets. Sorghum prices have remained firm, but discounts for SOR2, SOR3 & SORX still have quiet a range. The pulse market had continued to firm under the continued demand from Pakistan, with numbers around $450 Dubbo, Moree and Narrabri, whilst Darling Downs numbers have reached the $465-$470’s levels, ex-farm pricing can also be organised if required. Please call the office if you are looking to price any parcels prior to the end of the month.