The markets cautiously took some profit last night. The corn market lost some of its bullish momentum on technical resistance, but with yield expectations continuing to be trimmed as this continued post pollination heat, is the biggest influences on final yield. The soybean market put on a couple of cents on some new crop demand, with China purchasing another 120Kmt of US beans overnight, but with a better weather forecast, and the chance of rain (1/4 – 1/2 inches) next week across some of the growing area, traders are being kept on their toes. The wheat markets were mixed, as Chicago lost a couple cents and Kansas wheat pushed higher. Some US wheat has been traded this week, but Egypt was a big buyer of Black Sea cargoes, the US wheat tendered was $15-20 overpriced.
Cotton market made a fresh new low overnight, but did finish up for the session. ECOM are forecasting an increase in physical demand, with the 81-83 cent still seen as the key buying numbers for most mills. China is also expected to release an additional 300kmt of import quota for September, but this will be clearer over the next week or two.
Aussie currency dropped under 0.89 overnight, as the flight to safety dragged some money away from our shores, as we watch the Syrian events unfold. Global safe havens for money, like gold, US dollars, and government bonds should continue to attract additional investment. The Dollar looks set to continue its downward trend for now, with the RBA setting no end to the rate cutting cycle.
Domestically, new crop prices are holding strong for new crop Multigrade APW in the system and stockfeed 70/10 ex-farm. Multigrade Durum has held around the $350 Newcastle for the last week for DR1. New crop canola continues to hold the best numbers seen in the last couple of months, around the $560 track Newcastle. Barley numbers are continuing to firm, with good premiums on offer for deferred pick-up. With sorghum planting almost just around the corner, new crop numbers are attractive at $280 Newcastle and Brisbane port zones. New crop faba’s have remained steady at around $390’s, whilst chickpeas have started a slow move up, with prices hitting $400 Narrabri and Goondiwindi packers.