Grain Report Friday - 21st July
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!
Well, that’s it, nothing more to see in the Black Sea, as another grain terminal explodes in the background.
Chicago wheat initially traded up to 750 cents / bushel (or up 25 cents bushel) up on previous close as the market digested the Back Sea situation?
But then during the session, it was sold back off, defying logic and closed pretty much unchanged.
The world situation has not changed.
There is still a significant supply risk in the Black Sea with each country threatening to target vessels entering each country's waters.
This adds a lot of complications to buyers who already have contracted grain, and the risk of execution.
It also puts a question mark over the international buyer’s decision. Do they continue to buy their wheat from Aldi where they can’t get a shopping trolley and have to pack their own bags; or do they come back to “Westfarmers” to buy some good quality premium goods.
I think this decision was reflected in the activity on CGX yesterday.
It was like someone threw a few buckets of burley into the CGX ocean of grain and a feeding frenzy erupted.
The beauty of CGX is; you don’t have to go into a frenzy and gulp the burley down straight away when the fisherman throws it in. Splash the water a few times to show him you are there but let him know you want a big fat worm before you take the hook.
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