Fact of the Day – If all of the Cotton produced annually in the U.S. was used to make one product, such as blue jeans, it would be enough to produce around 5 billion pairs.
With September bringing forth a cool start to Spring, we are still yet to see any changes on the horizon for another wet September much like the one we experienced last year. Across North West New South Wales (NNSW) the conditions continue to dry out planted crops and impact the domestic market. Internationally, weather is proving to be more of a nuisance than anything else. Russia is set to have a promising yield in regards to their Wheat, though climate conditions could prove to impact export logistics throughout their bitter winter months. As we move across the globe, the United States have copped the brunt of Hurricane Harvey, though there is no respite in sight with Irma following closely behind. Even if Hurricane Irma does not make landfall, it still has the potential to damage one of the largest producing Cotton areas in the country with its torrential rain. How this effects prices will be told over the next 24 hours.
Demand across the grain markets has slowly been on the climb over the past few months now, mostly spurred on by weather conditions domestically and the harvest ahead. New crop feed Wheat for January delivered in to the Downs is up and firm at $335 with current crop for October delivery at $317. As of late there has been continuous notice in F1 Barley through the region seeing bids of $310 Downs for current and new crop. Sorghum is bidding at the $300 mark in to the Downs, though there is also demand for Ex-Farm options as well depending location for September and October – Buyers Call.
As Central Queensland growers have started to get the headers in to the paddock, we will start to see more of a demand for new crop chickpeas over the 16/17 season’s peas. This is due to the lighter colour and the lighter grain that is more sought after overseas when fresh from the paddock. Current crop 16/17 is fluctuating as of late with prices delivered Narrabri for September at $900. For September in to October delivery for new crop prices, Gladstone and Mackay port zones sit at $935/mt. Where more southern delivery points such as the Darling Downs are priced for Oct/Nov at the $900 mark. Faba Beans have been a bit quieter as of late, even though the dry weather will push the price, at the moment there is not a large amount of demand for September with buyers looking to spread tonnages over Sept/Oct/Nov with carry costs. Prices are floating at the $240-50 ex-Farm conditional on location and quality. Export bids have re-emerged at $260 delivered Narrabri for No.1 less $20 for No.2, this will in fact continue to drive the domestic demand and be more competitive at $250 ex-farm for No.3’s with a much lesser quality risk.
The market has been closely effected by international factors, especially in regards to the detrimental weather conditions around the U.S. The futures market across the board for Cotton have been excited due to the Hurricanes inevitable impact from Cuba towards the Mid-South states and this has pushed prices to sit at $510/bale for 2018 cotton and 2019 cotton is twenty dollars below at around the $490 mark. The Aussie dollar has also climbed back to its high and started the day at $0.804 (at time of writing).