Grain Report Tuesday - 17th 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 rose on news of the Saudi tender while there was broad weakness across oilseeds as logistical concerns ease in Europe.
Saudi bought 804,000t of wheat mainly from Bulgaria, Romania and South American suppliers. Russian wheat was not prominent, indicating that export controls are working, and that Russian wheat may be less prevalent from herein. It was not directly supportive of Australian wheat values but it’s the first step in reshaping trade flows into the next northern hemisphere harvest. European wheat futures rose to a 7-week high, while Russian wheat values rose US$6/t to $234/t.
Wheat crops are improving across western Europe but crops across the Black Sea and Baltic states are underdeveloped due to poor topsoil moisture at planting.
Morocco will continue to provide import subsidies at least until April as it seeks to encourage increased imports after two successive poor crops. French exporters will be hoping to land a chunk of this business having lost market share to Russia across north Africa in recent years.
Corn and beans are reliant on ongoing strong demand with a record South American crop looming large. Funds continue to build long positions in corn in contrast to their holdings in wheat/soybeans which is unusual and may suggest they need to adjust their wheat/soybean positions.
Canadian canola fell on profit-taking after its recent rally and weakness across other veg oils and in European rapeseed. Canadian canola values look to be well supported fundamentally at current levels owing to the large discount to Europe and its relative competitiveness against other veg oils.
BOM remaining wet for QLD sorghum belt but supportive of a quick end to harvest elsewhere.
$A steady in the mid 63’sUSc.
ASX lower at $322/t
Wheat bids were firm to slightly weaker yesterday across both east and west coasts. Lupins rose in WA by $19/t to $504/t. Malt barley values eased $10/t across south-eastern ports to $335/t, tightening the spread to $20/t but still more than double the WA malt/feed barley spread which is $9/t. The arrival of bulk cargoes of peas into India and the execution of cargoes of faba beans to Egypt has dampened interest in new business but there is still reasonable liquidity from traders looking to top up bulk vessels and accumulate at lower values for futures business.
24/25 Best Bids 16/12
Wheat APW1 $386/t Kwinana (-1), $366/t Geelong (n/c).
Feed barley $324/t Kwinana (-2), $315/t Geelong (n/c).
Canola EU $885/t (+15) & non-EU $740/t (+4) Kwinana, EU $806/t (+5) & non-EU $682/t Geelong (+5).
Open Market Call
Firm. Canola may be weaker.
For further market commentary please contact the CGX team on 1800 000 410
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