Grain Report Wednesday - 15th January
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.
High corn values supported firmer wheat prices with the narrow spread expected to increase demand for wheat from the feeding sector.
Concerns about another spell of cold weather that could stress winter wheat across the US Plains and Midwest next week also lent support.
No sign yet of any pickup in US wheat demand with export inspections this week within the range of analysts’ expectations.
European wheat values were lower despite weakness in the Euro on subdued buying activity and cheap offers from Russia (US$233-234) and Argentina (US$230-231).
Putin has sacked the architect of Russia’s rise to become the world’s largest wheat exporter, installing one of his cronies, as the Russian government's meddling in the grains sector continues. The sacking comes after changes in leadership at the Grain Exporters and Producers Union that has sought to exert more control over Russian grain exports (minimum prices and exclusion of non-Russian intermediaries). Government involvement in the commercial sector normally doesn’t end well.
Jordan awarded a 60,000t wheat tender at US$268/t C&F (Cost & Freight), slightly below prices for tenders awarded in early and mid-Nov. There is talk another 120,000t wheat tender may be announced this week. No indications yet about where the wheat may be sourced from.
A Brazilian crop forecaster puts the soybean crop at 166 million t, below most analysts’ expectations but still 12.6% higher than the 23/24 crop. Delays with soybean harvest (late plant and rain in central and northern Brazil) may delay the corn plant and expose the crop to greater weather uncertainty.
$A moving tentatively higher nudging 62USc on some better signs out of China. The next US inflation read tonight may test the conviction of the $A to hold at current levels.
BOM; some isolated falls of up to 10mm in CQ and around Goondiwindi and Mungindi in the last day or two with forecasts unchanged to drier for the sorghum belt which should see some harvest activity this week.
Cereals were firm to up $2/t across both east and west coast. Higher canola prices have attracted some grower selling with local basis off yesterday. There has been some renewed interest in faba beans and lentils into southern ports this week with prices up $20/t and $5/t respectively to $570/t and $923/t Wallaroo.
24/25 Best Bids 14/1
Wheat APW1 $380/t Kwinana (+2), $350/t Geelong (+2).
Feed barley $330/t Kwinana (n/c), $312/t Geelong (n/c).
Canola EU $880/t (-20) & non-EU $742/t (-8) Kwinana, EU $820/t (n/c) & non-EU $705/t (n/c) Geelong.
Open Market Call
Bids should be firm.
For further market commentary please contact the CGX team on 1800 000 410
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