Prices 06/02/17
In the USA corn, wheat and soybean futures all finished the week on a down day. Week on week we see US soft wheat futures at Chicago gaining around AUD$4.67 / tonne while local markets here were flat to a dollar firmer.
Currency was the big mover this week starting the week at 75.48 and rising to close out last night at 76.73. At these values a 1 cent move in currency equates to AUD$2.72 / tonne.
Chickpea prices are under pressure as the Indian harvest approaches. This week saw an increase of volume onto the Indian market as local traders cleared old stock to make way for new stock.
Australian chickpeas also continue to move slowly into the Indian market. This might become a matter of concern as those traders with better priced contract that have been unable to move peas into India as quickly as they had expected too may find they are having to move peas later than expected and during the Indian harvest. Call me cynical but to me that sounds like a recipe for an Indian trader to renegotiate a price.
There is some talk of heavy rain in the mid term for India, this may keep prices firm in the short term as traders worry about the quality of the Indian crop but longer term we would expect to see old and new crop prices converge and settle around $650/t here.