Grain Report Tuesday - 22nd 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.
Grain markets were level pegging to a bit higher overnight, consolidating at lower levels after heavy falls Friday. Improving planting conditions and moderate demand is holding wheat prices at lower levels. Corn, soybeans and canola values have been aided by improving demand.
Rain in Russia has helped but it’s not enough and the main wheat growing region of Rostov in southern Russia is not in good shape.
Russian wheat prices rose around US$4/t during the week but there remains a great deal of uncertainty about how the mechanics of increased regulation will work. For example, the rising minimum prices could accelerate selling as Russian exporters look to limit the amount of export tax they pay (which is proportionate and will rise with prices). Also, the trade wants to understand if Russian owned foreign subsidiaries will be excluded from selling Russian wheat. Russian wheat exports continue at around 1mt per week, so these measures have done little to slow the export pace.
US wheat export inspections were disappointing while inspections for corn and soybeans were above expectations, continuing the trend of improving demand.
Brazilian soybean planting is up to 18% compared to 30% last year.
Canola followed soybeans higher.
China's rapeseed meal futures sank 4.6% on thoughts that Beijing would ease anti-dumping measures on Canadian canola after Canada announced it would grant China temporary relief on Electric vehicle tariffs.
Graincorp announced it has received 613,000t of wheat, barley and chickpeas at QLD receival sites and 54,000t of canola and barley at Burren Junction, Moree and Dubbo. It has been testing samples at Griffith where windrowing of canola has commenced in preparation for the start of harvest there next week.
$A down a little to 66.56USc on $US strength and concerns over the Chinese economy that dragged on commodity values.
ASX wheat $334/t (+1)
BOM 8-day forecast has 15-50mm of rain for parts of north-east VIC, northern NSW and central and southern QLD which would slow harvest pace in the north.
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24/25 Best Bids 21/10
Wheat APW1 $374/t Kwinana (-2), $352/t Geelong (-4)
Feed barley $320/t Kwinana (-2), $322/t Geelong (-2).
Canola non-GM $810/t (+8) & GM $746/t (+16) Kwinana, non-GM $770/t (+10) & GM $715/t Geelong (+10)
Clear Grain Exchange (CGX) Open Market Call
Steady to a touch firmer on weaker $A
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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