19/8/22 Prices

19/8/22 Prices

US wheat futures continued to fall away. The Chicago SRWW contract shedding another 31.5c/bu (AUD$16.73/t) overnight. Spring wheat and HRWW futures were also lower. Increased competition from the Black Sea and poor weekly US export sales the key. The basis traders offering new season wheat contracts here are likely to follow the US market lower […]

US wheat futures continued to fall away. The Chicago SRWW contract shedding another 31.5c/bu (AUD$16.73/t) overnight. Spring wheat and HRWW futures were also lower. Increased competition from the Black Sea and poor weekly US export sales the key. The basis traders offering new season wheat contracts here are likely to follow the US market lower today. The AUD was generally flat against the US dollar overnight so will have little impact on the conversion. Newcastle FOB basis, although improving, is still negative, much better than this time last year, but still negative. If forward contract bids were to remain unchanged it would result in a positive new crop basis, the first time in a long time, you tell me the odds of that happening. Looking at wheat values C&F China, we see Australian wheat out of WA is still the cheapest wheat available by a country mile, US$282 versus the next cheapest, Russian, at US$410, no wonder the Australian export pace remains incredibly strong. A number of smaller exporters have joined the list of the major exporters of Australian wheat, increasing year to date volume. The price also allowing a volume market to exist, think X $ per tonne regardless of price and you realise why we are so competitive. Paris rapeseed futures were back ten euros in the Feb slot overnight. Winnipeg was flat while the Chicago Jan soybean contract was 15c/bu higher. The question is can the local price absorb another softer session at Paris, today without a currency lifeline.  The Chicago bean contract was helped higher by outside markets, oil and gasoline futures in the US both higher, weekly US export sales were healthy. Corn got a leg up from soybeans, closing a little higher. US basis bids across the corn belt were softer at some elevators, cash bids at many locations not following futures. The IGC did lower their international corn production number by 10mt to 1.179Bnt, reductions in the US and EU the main contributors.