Grain Report Wednesday - 2nd October
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.
Morning!
Wheat led the grain complex higher supported by ongoing dryness in Russia and geo-political tensions in the Middle East & Black Sea region.
Russia running out of wheat but EU not willing to pick up slack at Russian prices, given lower exportable supply.
Traders pointed to a lift in Russian wheat offer prices despite large exports as being a sign that market momentum was shifting.
Russian Government raised the export duty on wheat by 10%.
Morocco wanted to import EU wheat but at Russian prices. EU grain harvest had significant quality issues and supplies of milling wheat are tight.
Ukraine grain exports were down 16% in September from August as exporters decided to stop competing with Russia.
Dryness across the US Plains also made it onto news wires
Ukraine has around 20% of winter wheat area sown and may shift rapeseed sowings to wheat given unfavourable early season planting conditions
Corn rose with wheat. Dryness in South America and across Europe is thought to be affecting corn production potential outside the US.
Aussie canola is likely to have plenty of suitors.
Canola had a strong night in Canada and Europe.
Australia may benefit from the Chinese trade spat with Canada if China eases its strict admixture import requirements. Although China’s anti-dumping probe won’t be completed until late next year, already trade between China and Canada has halted with Chinese importers not willing to take the risk of importing Canadian canola.
It seems our lower canola output this year will likely be sought after with the EU requiring more after poor harvests across Europe.
Local tone weaker in the North as harvest rapidly approaches but firmer south & west
ASX traded down to $325/t from $332/t last Friday, representing NSW port zones which are softer as harvest nears and old crop selling increases
$A hovering around 69USc
BOM forecast unchanged with some rain on the cards for WA, southern, central and eastern VIC in next 8 days
CGX traded firmer in the south and west reflecting tightening production potential
23/24 season - Wheat (APW2 down to ASW9) traded to $350/t Kwinana (+$6/t), ASW to $327/t Melbourne (up +12/t on last trade 2 days ago), feed barley to $317/t Pt Adelaide & $307/t Portland (+$5/t), GM canola $680/t Melbourne (+$14/t) & non-GM 720/t Kwinana (+8/t)
No new crop trades on CGX. But new crop bids firmer in south, steady in north/west
$340’s/t VIC/SA ports & $330/t Pt Kembla (up +$10-15/t),
$327/t Newc, $320/t Bris & $350/t Kwinana (steady)
CGX open market call
Firmer across all grains for south and west, steady to softer in northern port zones
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
If you have any queries, 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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