Fact of the Day – With Game one next week, for the first time in State of Origin, both teams will be captained by players born in New South Wales. Greg Inglis (Kempsey) and Boyd Cordner (Taree) both towns only 120km apart on the Mid North Coast of NSW.
Some cloud, a couple gusts of wind and a sprinkle barely wet enough to dampen a newspaper is all we have seen as we hit the end of May and the start of winter. Groundhog Day continues weather and market wise, a slightly tempting forecast to go along side increased buying demand with not much supply. The markets were fairly still to start the week due to the public holidays across the UK and as well Americas Memorial day. Though with recent news of the US placing tariffs on imports from China, this had a stale effect on the CBOT Wheat, Corn and soy bean markets. Currencies across the globe are quite sporadic with the euro being influenced by political concern and the same being said about the US for their constant back and forward joust with the “Supreme Leader”.
The current domestic demand is still more than rampant due to the obvious reasons faced over the year so far. Pricing still remains firm in to the usual delivered market zones across southern Queensland and NNSW, with delivered farm markets also increasing as graziers look to cover themselves heading in to a tough winter. Feed grains (Wheat, Barley) in to the Darling Downs still hold their worth, today bid at $400/$410mt. As for Sorghum, from what we touched on last week, pricing has continued to drop from the US/China talks which impacted our export demand program dropping the market roughly by $25-30/mt. For sorghum to be pursued more competitively, feed grains will need to continue their strength (which isn’t unlikely based on current conditions) so lot feeders will be able to justify the cost to increase the grain in to their feed rations.
On the pulse side of the market and talking chickpeas, prices for both old and new crop have jumped this week as we head in to potential planting, partnered with production uncertainty. Pakistan has shown interest and this is where we see the increase as India are still not showing the slightest of interest our way. On a delivered basis in to the Downs, prices are at the $650 level for prompt delivery less $50 for out of spec grain (CHKPM). In to Narrabri, current peas are looking at $620 with new crop delivered October standing at $650/mt with the Downs at $635 Sept/Oct. Interest across warehousing sites still is strong from Goondiwindi down to Trangie and Gunnedah. Faba’s still sought ex-farm at the $450 level with firm offers taking the reins heading in to the July/August/September period.
As picking is almost done for another season, the cotton market is not showing any signs of slowing down for now. The futures have been rallying quite substantially day by day with all contracts for 2018 above the 90 cent mark. From current reports in the states, Texas’ growing area will continue to cop high temperatures for the next two weeks at least. This seeming to be the main driver of the current market trend. How this will impact the crop production is placing a large sense of fear across most US growers. Here at home, current crop and the next four seasons bale prices have been etching ever so high though the main focus is shining on to 2019 and 2020. Prices for 2018 are now standing at $620, 2019 $640, 2020 $580, 2021 $535 and 2022 at $535/bale (at time of writing).