Grain Report Monday - 13th January
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.
USDA lowered US corn and soybean production and stocks on Friday night sending prices higher.
Wheat found a way to shed a few cents. The wheat/corn spread has narrowed the past few months from over A$80/t to just A$15/t. The collapse in the wheat/corn spread is making wheat look very cheap and will increase its demand from the livestock feeding sector. Given the relatively tight milling wheat balance sheet, at some stage wheat values will need to rise again vis-a-vis corn to ration usage to ensure enough supply for the milling sector.
Weekly wheat, corn & soybean exports were well below expectations and US cash grain basis levels eased suggesting that the physical market is resisting higher futures prices. A stronger $US is not helping US exports.
Eyes will now shift to weather in south America where some showers forecast for parched areas of southern Brazil and to a lesser extent Argentina.
Jordan has 120,000t tenders for wheat and feed barley out with results announced mid-week.
The global oilseed complex followed soybeans higher. European rapeseed futures registered a year high at A$906/t which should support local values today.
$A weaker at 61.5USc as the $US rallied Friday night after data showed the world's largest economy created more jobs than expected last month, reinforcing expectations that the Federal Reserve will pause its rate-cutting cycle at its policy meeting later this month.
BOM there has been rain all down the eastern seaboard the past week with heavier falls east of the ranges. A similar rainfall pattern is expected this week with 15-25mm to hit the sorghum belt.
For corn to consolidate at higher levels will we need to see a pick-up in US export demand which has contracted markedly over the past few weeks. Yes, there are lower stocks but there is also a big south American crop on the way. Wheat will start to work into feed rations now which should show up in higher US wheat exports (these have also been considerably lower in the past few weeks).
Sorghum harvest looks like being a stop start affair. Some western areas will get going again this week.
24/25 Best Bids 10/12
Wheat APW1 $375/t Kwinana (n/c), $345/t Geelong (-1).
Feed barley $328/t Kwinana (n/c), $310/t Geelong (-2).
Canola EU $880/t (+5) & non-EU $745/t (+1) Kwinana, EU $805/t (+8) & non-EU $687/t Geelong (+7).
Open Market Call
Bids should be higher.
For further market commentary please contact the CGX team on 1800 000 410
CGX now own and operate the igrain market for grain stored on-farm
If you have any queries, we're always here to help!
Please give us a call or email if you have any questions.
Call 1800 000 410 or Email support@cgx.com.au
Comments