3/12/21 Prices

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A very nice recovery in US grain futures overnight, all three wheat grades closed sharply higher, corn was higher and soybeans at Chicago closed up 16c/bu ($8.29) on the nearby.  Both Paris rapeseed futures and Winnipeg canola were sharply higher, ICE putting on C$28.30 on the nearby January slot and C$17.80 per tonne for the March slot.
The AUD slipped against the US dollar overnight, now under 71c for the first time since July last year as it recovered from the COVID crash. The combination of higher futures and the weaker dollar could present some opportunity to producers today if reflected in local prices.
For instance looking at ICE canola futures, the combination of the weaker AUD / CAD and the sharply higher futures market equates to a move of roughly AUD$37.32 per tonne for canola.
Australia continues to grapple with huge production issues across the eastern states. Severely weather damaged crops are producing a number of issues for the trade who continue to scramble to fill both domestic and export slots with grain that meets their contracted specifications. One analyst based in Wagga Wagga, NSW, was calling anything west of the Newell severely downgraded with crops east of the Newell potentially salvageable but also with varying degrees of weather damage. Australia grows white wheat, which is far more susceptible to weather damage than the red wheat widely grown in the US and Europe.

The lowest price for the Tunisia durum purchase was US$682.56, equivalent to almost AUD$800 per tonne XF LPP.

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