Fact of the Day – Cross Counter’s thrilling Melbourne Cup win finally put an end to 26 years of heartbreak for Sheikh Mohammed’s famous Godolphin stables. His Highness Sheikh Mohammed bin Rashid al Maktoum is the prime minister and vice-president of the United Arab Emirates and the Emir, or ruler, of Dubai and now a Melbourne Cup winner.
International markets are being watched closely this week, with more than enough happening his month and next to impact our grain prices here at home. Firstly, the WASDE report is due out Thursday evening which will shed some needed light on how current estimates are placed on a domestic and global scale. Secondly, the G20 summit in Argentina is set for later in the month, although many crucial matters will be touched on, the main focus for most will be Chinese and US trade negotiations. A recent phone call between the two leaders had a positive outcome, with both heads of state confident that there would be a mutually beneficial trade settlement agreed upon. Cotton and Sorghum markets will have most at stake during this summit. Finally, the mid-term US election, it has been two years since Trump was voted in and election results are still trickling through. Though the Democrats are still looking to hold their seat swing, whereas the Republicans are tipped to hold on to the senate once again. The remainder of the year is looking to be quite exciting in terms of global markets and international trade.
Northern NSW and Southern Queensland crops copped an atrocious start to the week, with 40 plus temperatures and some wicked winds to add salt to the wound. For the planted summer crops, there is a dire need for follow up rain, just to balance the harsh conditions faced, as well as what the remainder of the year brings also heat wise. Scattered showers are forecasted for NNSW and the plains, though yet to hear of any substantial falls just yet. Sorghum has had a positive rise this week, it is a good time to look at locking in a guaranteed minimum price (GMP) to provide a secure price and also to have the option of riding the market rally’s this season. General harvest reports continue to file through with most wheat holding protein levels, though screenings appearing to be a problem for some. So far wheat quality has ranged from APH1 down to HPS1 (high protein screenings). There is also still looking to be a healthy amount of straw cut for bales (Wheat, Barley) which is looking for homes in to lot feeders and graziers around the area. Majority of growers around the region look to be finished by the end of the month or earlier.
Chickpeas have had a well-deserved spike this week, this rally created buying interest for Pakistan, Bangladesh and parts of the Middle East. It is a good start, though we mustn’t be quick to forget the large stockpile of chana that the Indians are sitting on. New crop Downs and Narrabri prices were back up to the $800 level, warehousing sites such as Goondiwindi, Wee Waa, Trangie, Belahna and Bengalala all sat up at $770/mt delivered site. Today there old crop demand has also surprisingly been heightened, this throws out some of the buyer’s colour and weight issues that we have been hearing over the last month. Last season’s chiccies are looking at about $100/mt less than current crop, though definitely worth a thought due to previous market prices over the past year.
Cotton has not shared the same amount of movement compared to grains this week. The market has been snoozy you could say, purely floating in a state of limbo as futures have their rises and falls, seemingly cancelling one another out. For now there isn’t a huge amount of selling interest, due to harsh growing conditions across the North West and very minimal follow up rain. Prices today for seasons ahead now stand at 2019 $615, 2020 $600 and $540/bale for 2021 and 2022 (at time of writing).