Grain Report Monday - 20th February
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?
Look Out!
Markets were relatively quiet and relaxed for wheat, corn and beans on Friday night.
However, lift your canola Prices as Matif rapeseed was up EU $14 (AUD $21 per tonne) on the back of firming palm oil prices, concerns over Argie soybeans and a heat wave in India.
The US markets are closed tonight as they celebrate President’s day. Someone might want to remind Biden, as he doesn’t know what day it is.
It’s a very interesting time as there is a lot happening in the world and things seem to be just warming up. You can tell this by the snow melting in the northern hemisphere.
Tensions between China and the USA have been building ever since Balloon-Gate.
The US is accusing China of “considering” supplying lethal weapons to the Ruskies, which would change the playing field a little.
Also, the grain export corridor is up for renewal in March and already Hokey Pokey has indicated he is not happy with this arrangement as the Ruskies are not benefiting from it.
If the corridor closes, Black Sea wheat supply becomes a major issue and prices will rocket into a Balloon.
Argie has another week of dry weather and potential frosts that could impact soybean production. Some “glass half empty” forecasters are now calling it below 30 million tonnes, which is their worst bean crop since the 2008/09 season.
The Brazilian Safrinha (2nd crop) corn crop planting is behind last year’s pace and the planting window is starting to close. A disruption to corn production in South America is a game changer and will drive wheat markets higher. Or it might just be a storm in a teacup. I don’t drink tea, so I think there is more to see.
Kansas winter wheat is dry as it comes out of dormancy. The 90-day forecast is warm and dry for the Hard Red Winter wheat belt, however the Soft Red Winter wheat belt is forecast to have above normal precipitation.
A heat wave is hitting India (good golly blimey) and the government is indicating export curbs will remain in place for this year, with their stocks at 6-year lows. Again, nothing to see here; can I quote John Elliot “Pigs arse”.
And finally, reports of a winter drought in Europe, but not sure what that means? I know North Melbourne and Gold Coast Suns have a winter drought most years. The market is calling French crop conditions 93% Good to Excellent, which is up 1% on last week.
Our prices are all firmer. Exports have been strong and there is a lot of world uncertainty and supply risk.
But don’t hide your grain, list on CGX, but at the price you want. You set the market.
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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