Grain Report Monday - 2nd December
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 was a little lower and corn and canola higher on Friday night.
Wheat was on the backfoot due to competitive offers from Russian and Argentine suppliers despite news that Russia was about to restrict exports with a reduced export quota (from 29mt to 11mt) and increased export duties (up another 20%).
But news of the Russian quota was overshadowed by very competitive wheat offers out of Argentina which acted to drag European futures to a two-week low.
US wheat exports last week were about 366,800mt on average with analysts’ expectations. We are just not seeing any significant business flowing to exporters outside Europe and now Argentina wants to sell at discounted prices.
US soybean export sales were above expectations on Chinese buying but prices were kept in check by the looming massive South America crop due for harvest Feb/Mar
Canola followed palm oil higher where very heavy rainfall across Malaysia is expected to further reduce production levels. StatCan is out this week with its estimate of Canada’s canola crop, and many are thinking it will be supportive.
$A edging up over 65USc again. No change in market sentiment.
BOM very wet across the east coast with another similar system on the way, Tuesday predicted 25-35mm for central and southern NSW into north-east VIC. Harvest delays and quality issues will be the order of the day for crops on the east coast not yet harvested. Already I’m seeing shot and sprung grain in crops around Cowra.
There was a step up in grower selling in the north last week as trucks became available (they were avoiding the quagmire in Brisbane) and as growers make way for a bumper sorghum crop. There is very little support for prices coming from the international markets.
Wheat prices edged $2/t higher on the west coast on slow grower selling. Elsewhere prices were flat to slightly lower. There was a little bump in Canola prices $6-10/t and this level should hold up today. Faba Beans back up $38/t to $667/t Wallaroo – the fall I reported on last week could have been a statistical anomaly.
24/25 Best Bids 29/11
Wheat APW1 $382/t Kwinana (+2), $343/t Geelong (-3).
Feed barley $330/t Kwinana (n/c), $311/t Geelong (n/c).
Canola EU $806/t (+6) & non-EU $695/t (+10) Kwinana, EU $748/t (+7) & non-EU $648/t Geelong (n/c).
Open Market Call
Hard to see traders chasing grain too hard in this market.
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