Fact of the Day – He gripped a tennis racquet for the first time when he was just four years old. Therefore, it’s no surprise Novak Djokovic has just won his 7th Australian open and 15th Grand Slam title at the age of 31.
With the US government shutdown now at an end, this allows the USDA the freedom to finally report on the global estimates and supply on February 8th after a long hiatus. This information will be critical as it will feed the trade on the progression of global agri-commodities over the last two months as they have since been reporting with minimal data to go off. Whilst we wait on the WASDE report next month, weather has been the main focus over the US, extreme cold and unseasonable heat looks set to hit the winter wheat causing some significant plant demise if as serious as forecasted.
Sorghum demand is rampant as more and more starts to be stripped from Narrabri heading north. High screenings and low-test weights continue to be a disappointing factor in an already dismal season, though the demand still remains. Narrabri to Moree areas are bid at $345-$350 ex-farm (less $15-20/mt for SOR2), with delivery options also available. Buyers are also looking for Sorghum cover out to April and May. Delivered Newcastle market zone is bid at $395, though it is very much a sellers’ market as later planted crops look only to be more scarce quality wise, bringing more focus to the current grain coming off. Domestic demand against export demand is very much the same, though the export market will continue to watch closely at China’s demand for sorghum and their current uneasy trade talks with Trump. With sorghum, we will also see a lot of straw and hay being cut and baled, this with the continued market demand for roughage by feedlots and graziers will be another cost-effective avenue some poor performing crops can take advantage from.
Cotton futures made modest gains before the long weekend and have really seen no change since the start of the week. There is still high demand for bales, though production uncertainty is a major factor for growers as the risk of more forward selling is just too much of a gamble at this dry time. 2019 bales have been trading at $600 over the past fortnight. Prices today for seasons ahead now stand at 2019 $590, 2020$590 and 2021 $550(at time of writing).