Grain Report Thursday - 25th September
- Clear Grain Exchange
- Sep 25
- 2 min read
What price do you want for your grain?
Australia’s independent grain report—designed to help support your pricing decisions before the market opens at 10:00am AEST. If you need to change your offer price, simply edit it before market open.
Nothing much has changed from a fundamental or pricing perspective.
We mentioned previously how problems in Russia’s grain industry could be the catalyst for a fundamental shift in global grain supply and how this may show up in this year’s winter wheat plant…..High costs of diesel and dry weather have slowed Russia's winter wheat sowing campaign with only half of all fields seeded to date and the time window rapidly closing. A former senior Russian Ag official was quoted in news wires saying “Unfortunately, Russian farmers may not sow wheat because of high diesel prices”. Domestic wholesale prices for gasoline and diesel in Russia have increased by around 40% this year because of a production decline due to constant attacks by Ukrainian drones on refineries. Only 7.5 million hectares out of 17 million allocated for winter wheat have been seeded. "The soil is very hard, like stone, there’s no rain, and many are unlikely to sow." Profitability in the Russian grain sector has been hit by bad weather, high interest rates, rising export taxes and high fuel and fertilizer costs. So far, none of this has shown up in wheat prices but it’s something to keep an eye on.
Chinese importers kept up a hectic pace of Argentine soybean purchases after export taxes were removed temporarily. Since Argentina lifted its tax on Monday, Chinese buyers have booked about 20 cargoes, or roughly 1.3mt of Argentinian soybeans. This is sending a message to Trump that China doesn’t need US soybeans. The purchases include a mix of old and new crops, priced at a premium of about $2/bu above the Chicago Board of Trade (CBOT) November soybean contract. China is likely to further accelerate purchases of Argentine soybeans to fill the procurement gap from November to January.
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