Chickpea prices at the Delhi market saw their largest decline in a few weeks overnight. Shedding roughly AUD$22.00 per tonne once the change in Rs/AUD is taken into account.
Last night saw most grains, both cash and futures markets, from around the world close lower. Winnipeg canola futures and Paris rapeseed futures were sharply lower. Paris shedding roughly AUD$11.96 / tonne and Winnipeg AUD$13.08 / tonne on the nearby contracts. There were similar moves lower in the outer month contracts fat both Paris and Winnipeg, so expect similar moves lower for new and old crop cash bids here today if local markets do indeed track the futures markets lower.
Wheat was not immune to the weakness. Futures markets at Paris and Chicago also fell away. Cash values out of the US Pacific Northwest were lower by up to AUD$7.50 per tonne. White wheat values out of the PNW dodged the downside seen in both US spring and HRW wheat, shedding just AUD$1.89 FOB.
Paris milling wheat futures were off E4.25 on the nearby and E4.00 in the December slot, London feed wheat futures were hit even harder.
The slip in US corn futures and cash markets rolled across to weakness in US sorghum values out of the Gulf. When converting both US sorghum values and Chinese CiF values to an equivalent price ex farm Australia we see a plausible slip of around AUD$4.00 to AUD$6.00 when compared to yesterday’s conversion of Chinese and US cash sorghum values.
Argie wheat FOB up river was one of the few cash wheat indicators that closed higher and that was only by a couple of dollars. The wet weather that has devastated parts of SE Brazil during wheat sowing there has continued to support Argentine basis in the short term.
The world fundamentals haven’t changed a heap this week, some rain in WA was bearish but the continued reduction of production estimates out of Russia does more than counter this. Profit taking after the recent rally in wheat appears to be the key to most of this weeks softer markets.