Grain Report Tuesday - 10th 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.
International grain markets have a firmer tone. Canola seems to be rising independently of other oilseeds, possibly trading the tighter rapeseed/canola balance sheet.
Canadian crushers are putting pressure on the Government to restrict used cooking oil imports from China. The oil is used in Canadian biofuel manufacturing. The replacement of this by Canadian canola oil could assist the Canadian crushing industry if there were any restrictions on Canadian oil entering the US.
Corn has quietly ground to a 5-month high on continued strong demand and as funds shift their position to net long.
Wheat has turned higher on the back of moderately higher offers out of Europe. We need to start seeing business shift away from Black Sea countries or even Europe for the market to hop a leg higher.
SovEcon estimate Russian wheat exports for November at a still hefty 4.1mt, down from over 5.6mt in Oct.
Russia has raised its export duty another 32% to try and further curb exports to ensure enough domestic supplies and keep food inflation in check.
The first shipments of Russian wheat purchased directly by Egypt have begun loading, after a delay of around 3 months. Russia has begun supplying after the Egyptian Ministry of Supply gave Russia assurances of the financial capability and mandate of the new buying agency. The direct sale was reportedly at US$235/t FOB which is around the current global price level.
Bit of US data out this week will be closely watched. We are looking for US grain export sales to continue to trend higher and USDA to further tighten the global grain balance sheet amid strong sales of corn and soybeans.
$A rebounded to 64.4USc after it briefly dipped to under 64USc. There doesn’t seem to be a lot of conviction in the $A market as pressure mounts on the RBA to cut rates.
BOM little to no rain for harvesting areas in next 8 days.
ASX wheat $325/t no real change.
Milling wheat values are a little firmer on the east coast and a little weaker in WA. Malt spread in south-eastern ports has perked up a bit on some new malt business out to $30/t. Local canola values have rallied in line with international prices and as another week passes without any export restrictions on Canadian canola. Pulses seem to have found a level after firmer prices in the last week on possible crop damage. Newcastle/Brisbane sorghum spread has moved to +12/t from +2/t last week, maybe pricing itself off stronger southern ASW wheat values.
24/25 Best Bids 9/12
Wheat APW1 $385/t Kwinana (-2), $355/t Geelong (+4).
Feed barley $327/t Kwinana (n/c), $310/t Geelong (n/c).
Canola EU $865/t (+15) & non-EU $747/t (+7) Kwinana, EU $798/t (+16) & non-EU $698/t Geelong (+22).
Open Market Call
We should be firm on most recent price levels.
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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