Strong gains across the board in all grains pits last night. Wheat saw risk premiums added to the market due to uncertain losses across the winter wheat belt due to drought and freezes. Strong export inspections were also noted and a spillover from corn saw the May wheat contract close up 21 cents at 709.75US cents/bushel. Corn also broke through overhead resistance and finished up 40 cents for the May contract. New crop months were also up strongly as corn plantings have been delayed due to cold, wet weather and a gloomy forecast for the first week of May. Corn planting pace is the lowest it has been for 20 years, at around 9% complete (53% last year). Soybeans also saw strength from good meal demand and a spillover from corn. May beans closed up 41 cents at 1471.75Us cents/bushel.
Cotton also caught the coat-tails of grains and the July contract was up 165 points to close at 95.90US cents/pound. Cotton’s planting pace is only around 6 percentage points below ‘normal’ and wasn’t significant enough to give a bullish tone to the market.
Locally, we have demand for chickpeas ex-farm west of Narrabri or delivered Dubbo for May/June delivery. Prices are around $490-495XF, depending on location. Last week we had strong demand for ASW in certain sites for April transfer, which has now been filled. Sorghum into Narrabri for April delivery shorts have also been filled and we are now shifting to a May/June delivery with prices slightly below last week’s numbers.
With current wheat/sorghum spreads being quite narrow, consumers have shifted to a preference for wheat. We currently have demand for all lower grade wheat in the system or ex-farm from the LPP, north to the border and in the Central West region. Last week 70/10 traded at $250XF on the LPP region and today is around $270/mt delivered Tamworth for May delivery. Demand for high protein wheat in to the packers is fairly minimal with prices stagnant and growers who are holding this quality of grain are generally west of Narrabri and as it remains dry are not looking to sell at the moment.
We have a buyer looking to source old crop fabas, if you have stocks and are looking to price, please give us a call. Mungbeans continue to remain strong and we are buyers of mungs into Goondiwindi. Prices are currently POA so please call to price individual parcels as we have been competitive.
Cotton today is at $427/bale for 13 crop. Picking is progressing well due to the perfect weather conditions with most growers 50% complete or better across the northern Valleys.