Grain Report Monday - 19th December
Our goal is to help growers and their agents determine the selling price for their grain by providing relevant price discovery each day. Check out the moves in overnight international markets and yesterday's actual traded prices across Australia. There's also market commentary giving context and comparisons to prices of international physical markets. If you need to change your offer price, simply edit it before market open.
What price do you want for your grain?
Wheat markets were softer on Friday night.
Kansas wheat was off almost AUD $9 pmt (per metric tonne).
Corn was off slightly, and beans were up.
A couple of flares went off over the weekend with India purchasing some APW from Australia.
If this continues, there will be a lot more flares going off in the world market.
The Indians paid USD $426 C&F (Cost and Freight), which works back to AUD $567 FIS (Free In store) WA and AUD $543 Track East Coast/SA.
Let me put that into my calculator.
AUD $543 less current East Coast Track Market at $405, equals around $140 under export parity. My calculator just exploded.
The good news is the WA market is only trading around $100 under this sale. That should make the WA grower sleep better.
APW wheat on the West Coast is trading at a $50 premium over East Coast / SA.
The freight ex East Coast is only around AUD $10 more than West Coast, so I would sail my boat past WA and load from SA or Vic.
Of course, growers could look at world values, and list at higher values on the CGX exchange. Or you could warehouse it, keep it hidden from the market because you don’t like the price.
That would be like me wanting to sell my car, but other cars are listed at values lower than the market value.
So, I could not list it, even though I want to sell it, in which case nothing will happen, as buyers can’t read my mind.
Or I could list it at the price I want and see what happens. We don’t all have to be sheep.
We are going to export 27+ million tonnes between October 2022 and September 2023. Boats need to be filled.
If every farmer didn’t sell a tonne of wheat for the next month, or lifted their offer price by $30 pmt, the market would go up.
The farmer has the product to fill those boats, so you can control the price.
In other news, the Argie drought is finally over. Yes, that’s right! After 35 years, Argie has won another world cup.
However, their wheat crop is still knackered; their corn is starting to go backwards, and their inflation is running at 92%.
Their country is an absolute Messi (see what I did there).
Most importantly 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
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