Grain Report Monday - 25th November
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.
Wheat and corn eased Friday night to cap a modest week-long rally. European wheat futures held gains to be up A$9/t over the week. Part of the reason for the rebound in European futures is a weakening Euro and stronger $US.
Canola and rapeseed markets copped heavy losses over the week and were down again moderately on Friday night. Oilseed markets are down around 10% from mid-November as Chinese buying slowed, and as South American crops keep getting bigger.
French and European cash wheat values have started to rebound. FOB-Rouen asking prices for French 11.5% protein wheat gained over $14 euro/t from last week’s low on demand from Morocco & Africa and worries about Black Sea supplies.
Heavy snowfall has hit parts of western Europe, bringing serious disruptions in Germany and France. The cold front is expected to shift eastwards ending planting activities across eastern Europe.
There was a flurry of buying activity during the week. Bahrain tendered for another 120,000t of wheat, having already bought 25,000t from Australia. Algeria purchased 160,000t of Canadian and Australian durum wheat at US$348-$360/t C&F(cost & freight) for January and February delivery. Bangladesh (50,000t) and Jordan (120,000t) were also in the market for wheat. Iran purchased 60,000t of Russian and Kazakh feed barley in its tender for 120,000t on Thursday. While Turkey has issued a tender for 150,000t of feed barley.
Grains Industry of WA (GIWA) has increased its estimate of the WA grain harvest by 1mt to 18.6mt on better-than-expected yields. This will be the third largest harvest on record for WA.
$A was up a little to 65.3USc trapped in a narrow channel at the low end of the longer-term range.
BOM widespread rain for much of the east coast over the next week with 25-50mm forecast for parts of NSW & VIC. This will cause harvest delays and most likely lead to quality issues for some.
ASX last traded at $331/t, it’s been range bound for weeks.
24/25 Best Bids 22/11
Wheat APW1 $390/t Kwinana (n/c), $346/t Geelong (+1).
Feed barley $330/t Kwinana (+2), $314/t Geelong (+2).
Canola EU $812/t (-43) & non-EU $705/t (-37) Kwinana, EU $766/t (-30) & non-EU $698/t Geelong (-18).
Open Market Call
Canola remains under pressure. Cereals flat. Rain forecast could slow selling.
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
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