Futures markets have remained unchanged due to the Labor Day long weekend in the U.S. and Canada. Weather in corn and soybean growing regions in the states continues to be the driving factor of market movements. Some beneficial rain was received in the Midwest over the weekend, however another tilt to dryer and hot weather this week will raise concerns over further deterioration of crop conditions. While adverse weather continues to play such a large role we can expect the volatility of recent weeks in futures values to continue.
Continued dryness in Northern NSW and QLD will result in yield loss, with crops in Western regions already being abandoned. Growers who were more fortunate with rain earlier in the season will be able to hold on for another few weeks however like everyone else are looking for a few inches as soon as possible. The trade is coming to the realisation of a reduced crop in this region, with basis in the Newcastle and Brisbane zones remaining strong, while feed markets in the North will also provide support to the market.
New crop pricing remains firm for wheat, with track numbers above $300 in the Newcastle zone, while sites in the North can expect a premium over this number. Brisbane line has been holding above $315. 70/10 style contracts are also continuing to provide value over track contracts, with prices above $260 ex farm north of Moree. Durum values have held around $345 – $350 for DR1 multigrade contracts over the last week. The first canola crops will be windrowed later this month, with harvest beginning by the last week of September. Canola prices are being more affected by volatility in futures markets, falling from $563 last week to now hold in the $540s. Faba bean prices have been holding steady for a while now at $400 delivered either Goondiwindi or Narrabri, while Chickpea prices have managed some modest gains to now be sitting at similar levels to faba prices.