Grain Report Tuesday - 04th April
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!
Wheat and corn markets mixed last night, and beans hopped in a car full of crude oil and biodiesel and headed up a hill.
Crude oil firmed up almost USD $5 per barrel.
The crude oil market has risen from USD $67 a barrel in mid-March to USD $80.52 last night; up USD $13.52 per barrel.
Back of the envelope calculation says that’s up around 12.5 cents per litre.
When bowser prices go up over long weekends and school holidays, the fuel watchdog says it has nothing to do with these occasions, but prices are cyclic.
I reckon that cycle will peak at the end of this week with Easter and school holidays approaching.
However, the good news is oilseeds will get dragged along with higher oil prices as we add vegetable oils into biodiesel.
Higher Veg Oil prices equals higher canola prices.
Matif canola futures were up another EU $14.75 last night, or AUD $24.
Add in the shrinking Argie bean crop and oilseeds seem to have some short-term support.
Louis Dreyfus has Left the building. Well, they have left the Russian grain market.
Reports also that ADM are reviewing their joint venture in Russia as well.
So that's now Cargill, Viterra, Louis Dreyfus and maybe ADM departing Russia.
Can anyone else see the writing on the wall?
A “nationalised”, “controlled”, “regulated” Russian wheat market is a very powerful chip on the poker table of Black Sea negotiations.
Hokey Pokey will be sitting there, his cards on the table, a smirk on his dial, as he pushes all his chips into the centre; “I will match your economic sanctions and raise you world hunger”.
If you own some grain, don’t throw all your cards in because you have a pair of APW’s and some Canola. Play the game, call the buyers bluff, and list it on the big CGX poker table.
“I see your bid and I raise you $20 per tonne”.
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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