Grain Report Friday - 12th May
What price do you want for your grain?
Overnight moves in international markets and yesterday's actual traded prices across Australia are below to help you determine your price. If you need to change your offer price, simply edit it before market open.
Look Out,
Wheat and corn markets got smashed last night.
The trade is positioning itself for tonight’s World Ag Supply and Demand pull a number out of a hat.
But as mentioned yesterday, the mood of the room is a bearish report with bigger US crops and increased corn stocks due to China cancelling purchases.
The Trade “guess” is that world wheat stocks will be around 260 million tonnes or 5 million tonnes less than this year. However, it's what stocks are held by the major exporters that will drive prices, which we think might tighten up a little bit, which will support world prices.
One thing we do know is, these reports are never a Monty, and they often throw in a surprise, and the market all goes, wow I didn’t see that coming.
There is one “Bull” still running around.
Yesterday it was reported by a Turkey in “Instant” Bull the grain corridor had been extended for 2 months.
Well, that was absolute Bull, as there has been no agreement to extend the corridor agreement.
That’s all I have time to write about this morning before my deadline, as I have spent the last hour writing an in-depth analysis of world prices and export parity values and my views for my subscribers.
I even expanded into seasonality and the cost of carry versus where we are currently at; quite thought provoking.
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