Futures were mixed overnight with May 13 wheat up 6.5 cents at 710 cents/bushel. It traded both sides of unchanged and both the Kansas and Chicago exchanges saw pressure from corn and beans along with a stronger USD overnight. Profit-taking and favourable weather in the eastern corn belt also pressured CBOT wheat. Despite all this negativity, it posted gains. May corn fell 4 cents to close at 710.25 cents. Profit taking and a higher USD were the driving forces behind corn’s decline. Added to the negative tone was lower ethanol production for the week (1% lower than last week and 10.7% lower than the previous year). Corn use needs to average 87.9 million bushels each week to meet the USDA’s projections and this week was sitting just over 83 million bushels. According to data, there appears to be a short-term negative outlook for the corn market.
Soybeans posted massive losses overnight and the May contract fell 22 cents to close at 1446.75 cents/bushel. China’s port stocks are now shifting to stable levels as Brazilian vessels make way to fresh supplies. Rumours that US soybean sales cancellations could emerge are appearing. Favourable weather conditions for Central Brazil in the next week also added pressure to the beans market. Cotton posted strong gains overnight with the May contract up 126 points overnight and closed at 88.59 cents/pound. Support came from better-than-expected US retail sales.
Sorghum continues to be harvested in the northern regions and quality is still mixed, with borderline/low test weight the biggest issue this year. We have homes for prompt SOR1 xf for all regions and competitive system prices. Buyers for SOR2 are limited as consumers aren’t looking to take large volumes of off-grade sorghum. We also have a number of options for corn, both Prime Maize and Feed and for prompt pick-up. We have delivered Downs/Brisbane options as well as XF from the border regions, through to LPP and Central West locations. Please contact us if you are looking to price corn. On the wheat front, demand has pulled back for some grades as exporters are telling us that southern grain is anywhere between $10-20/mt ‘cheaper’ than our grain and southern NSW/Victorian growers are active sellers at the moment. In saying this, we do have demand for APW, H12 and generic H2 delivered Narrabri, as well as Gherkes. We also have demand for 70/10 in all regions on-farm.
Chickpea values are softer this week for delivery into Narrabri as immediate shorts have been filled. Last week we were seeing $500-505/mt delivered Narrabri, this week prices are closer to $475-480 delivered. Delivered Downs for Mar/April delivery is $500-505 and April/May $520-525/mt. Feedback from buyers on chickpeas is that demand from the subcontinent is very thin and one anecdotal report suggesting the subcontinent have enough stock to get them through to the Ramadan period, hence minimal demand. Ramadan period this year begins 9th July which is much earlier than usual, so vessels would need to be on the water by late May/early June to meet this period. Mungbean values remain steady this week at $850-900 delivered Goondi for a hectare-based contract. Please contact us to discuss ‘bells & whistles’ around these contracts.