Grain Report Wednesday - 22nd March
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!
Like Molly Meldrum at any public event, the markets had their pants pulled down last night.
Chicago wheat is off almost AUD $10 per tonne and trading back under the USD $7 per bushel.
Kansas wheat was off AUD $5 per tonne.
Ironically, it's National Ag day in the USA, and the market gets sold off to put a dampener on celebrations.
The wheat markets were softer for no reason, other than we are comfortable with the grain export corridor.
Matif Canola was off another EU $12 per tonne, which is almost AUD $20 per tonne.
Interesting to note the AUD settled at 0.6666, the number of the beast who brought a plus one along.
I have seen three reports on the planting of the Brazilian safrinha crop (2nd corn crop). One has reported 77% planted, another reported 85.1% and a third one reported 91% (6% behind last year’s pace).
My plumber next door had no idea but commented it was the slowest planting in 12 years., and of course mum thinks it’s 11. Won’t be long before we put mum in a home, she has no idea.
The thing to watch here is, a late planted corn crop could result in loss of yield and with a tight corn balance sheet, things might get hairy if we shave a few tonnes of the Brazilian’s patch. This joke never gets old.
There is a crop guru in South America called Dr. Michael Cordonnier who just cut another 1 million of the Argie corn crop. He has it at 36 million MT, whilst the USDA has it at 40 million tonnes.
He has the Brazilian corn crop at 121 million tonnes versus the USDA at 125 million tonnes, so he has the South American corn crops at 8 million lower than the USDA March report.
And now we see China buying 2.247 million tonnes of US corn over the last week. China is forecast to import around 18 million tonnes in the 22/23 marketing year.
Confucius says, never believe what people write about Chinese demand, just follow what they do.
Finally, the damage caused by rains and hail to Indian crops is getting a lot more airtime, however, no one has put a figure on it.
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