A combination of a weaker AUD and a better closing price on the NCDEX would normally see new crop chickpea values stabilise here. There is still a lot of speculation over Indian government internal support prices and export policies though and with rain in the forecast for much of the NSW wheat belt over the next week we may see our local merchants continue to push values lower.
Interesting to see the old Canadian Wheat Board, now called G3, still paying incremental premiums for durum and spring wheat protein. In the case of durum we see a premium of C$1.00 per 0.1% at present. It must be said that the difference between the G3 pool estimate and the average cash price in SW Saskatchewan is pretty large though. At 13% protein 1CWAD13 is bid at C$326 in store Thunder Bay. In SW Saskatchewan we see the same durum bid at C$266 for the cash market. This would equate to C$20 – C$30 better than the current pool estimate. A midpoint between the cash and pool bid would equate to roughly AUD$370 NTP Newcastle. Yesterday we saw cash bids at AUD$342 less rail here, AUD$28 under the hypothetical estimate. This is closer than the buyers got last year.
US futures trade was mostly technical in nature with rain causing harvest delays in corn and soybeans in the USA. The wet weather there kept some support in the row crops but pressure on wheat as it improves soil condition and emergence in HRW.