Fact of the Day – The red of the Chinese flag symbolizes the communist revolution, and it’s also the traditional colour of the people. The large gold star represents communism, while the four smaller stars represent the social classes of the people.
The summit in Vietnam last week ended abruptly, as Supreme leader Kim and Trump were unable to come to an agreement on accelerating nuclear disarmament, for now. Though there was some good news to come out of the media circus, Trump tweeted that progress between China and the US on trade negotiations was moving very swiftly and smoothly. This news played its role across world markets, with futures and physical commodity prices rallying in wake of a profitable agreement for both parties being negotiated. The AUD opened today at just a slither under the $0.71 mark.
Now a full week in to March, forecasts still are predicting very little to no precipitation, which also coincides with at least another 7-10 days of 35 degrees or higher. As summer crops are coming off, whether it be Cotton or Sorghum, the already slim idea of a winter crop is getting more and more scarce as any autumn rain seems unlikely at this point in time. Feed markets remain the driving force behind any movement of grain throughout SQ and NNSW, with wheat, barley and sorghum just softening late last week and only making slight gains over the past few days. Pulses are at a standstill across the board, as now we can only wait till our product is sought after by the overseas buyers.
Once again, we have watched cotton futures and bale prices see saw over the past week, this really is only based on the knife edge that is the US and Chinese trade war. We saw a fluctuation of $5-10/bale throughout the past few days, though there remains little selling interest as production uncertainty continues to take its toll on growers marketing plans. Prices today for seasons ahead stand at 2019 $608, 2020 $590 and 2021 $545 (at time of writing).