US corn futures bounced a little on technical trade. There was relatively little to no positive news for US or world corn prices overnight. Sales cancellation for US corn to both Canada and China made for an abysmal weekly US sales report. News China is also cancelling corn from Ukraine didn’t help global cash markets rally. Looking at world prices from the major exporters into the Asian markets we see that S.American corn is still priced well below the US product. Possibly signalling further downside in US corn and potentially global feed grains in general in the near term. Weekly US sorghum sales to China were also very disappointing.
News that elevation capacity in the Gulf is still not at 100% after suffering damage from Hurricane Ida is also keeping interior basis levels low.
US sorghum is priced FOB Texas at US$297.50 for an October lift. Using China as a consumer base this would be roughly comparable to sorghum ex farm LPP at AUD$411. Sorghum out of Argentina is priced at US$226.25 FOB, again using China as the end point Argentine values buy boat are roughly comparable to an XF LPP price of AUD$318. Argentine sorghum continues to be the cheapest sorghum, other than Australian, I can currently see offered into the world market.
French feed barley is priced at roughly US$277 FOB. With frieght to China about US$70 per tonne it lands there for US$347. Canadian feed barley works into China at roughly US$380 – $390. Ukraine is pricing feed barley around FOB US$270, so CiF China roughly US$338. If we had access to this market it would be equivalent to about AUD$350 – $360 XF LPP. Using Ukraine barley into Saudi Arabia we have to compete with a number closer to being equivalent to AUD$300 ex farm LPP. These numbers may not include all costs and trade margin.