Prices 31/10/18
US grain markets were weaker in overnight trade. Corn and soybean futures were lower on the back of poor demand and the last of the crop getting harvested. US wheat futures were caught up in the selling but offered little fundamental resistance as export demand remains poor for US wheat. The slow pace of US winter wheat sowing was said to underpin values somewhat.
I’m a little surprised that the sale of US wheat into Egypt on Friday evening didn’t have a little more impact on the US market. It confirms prices are about where they need to be for grain and logistics.
Western Canadian durum values remain flat with bids across SW Saskatchewan steady at C$211 ex farm. This roughly equates to about AUD$325 NTP Newcastle. Compared to a current domestic durum price of AUD$480 NTP I can’t see what little durum is produced this year making it onto a boat. In recent weeks local millers had paid as much as $505 ex farm LPP for DR1.
With the rain on the Downs actually allowing some producers to double crop out of poor, or recently hailed out, winter crops mung bean seed is also expected to get tight in supply. Mung beans into India are a little firmer with the better grades trading at roughly AUD$950 delivered mandi. Compared to local new crop bids Indian values do appear attractive. Current acres contract values peg processing grade at AUD$720 ex farm. We do need to take the 30% import tariffs into account though, which hurts.