GrainCorps Pre-Harvest Optimiser is coming soon! Pre-Harvest Optimiser participants have the ability to take advantage of pre-harvest markets whilst also allowing involvement in any market upside at harvest. Participants will have exposure to northern hemisphere crop conditions with finalisation by July 2014. One key benefit of Pre-Harvest Optimiser is peace of mind knowing that your washout is capped at $25. Contact Alice, Jim, Steve, Gavin or Britt for further details.
Overall Central is still pretty dry, despite wide spread falls early March. Temperatures have quickly warmed up again, and forecasts remain dry for a month or so. This sits pretty well for the cropping side of things. Growers busy spraying country for nearly the first time this season, getting on top of volunteer cereals that came up with last rain. Would be happy for the dry weather to continue, so long as there is a good autumn break mid April in order to stick with planned rotations, expect to see a slight reduction in Canola hectares to be replaced with wheat, and Barley where soils can handle it.
Mixed farmers have also taken the opportunity on the back of this last break to plant forage crops such as oats, hopefully alleviating tightening on farm feed stock issues once it gets up and going.
On the back of news that new barley variety Scope has been accredited as making Malt status, reports are that seed is sold out in SNSW. It is yet to be determined what premiums will be involved and what type of demand there will be for it. GrainCorp Ops have not committed to any segregations as yet.
Grower selling has eased up significantly, growers still holding on to tonnes have either firm targets in mind or are wanting money later in the year.
Offshore markets have been quite subdued over the past month due to favourable weather conditions across the US. Winter wheat growing areas as well as funds liquidating their wheat positions.
The increased competitiveness of US orgin wheat has provided some support to the market, however the weight of the sellers is winning out for now. Demand has increased for US wheat with wheat now displacing corn into the feed ration, and there is talk of wheat displacing corn in Ethanol production and increasing export business being concluded.
Australian wheat values have largely followed suit however they have reduced competitiveness to other origins as growers are well sold, at the same time there is strong demand by exporters to cover current commitmets. This is exaggerated in some port zones as prices for certain grades differ significantly to other port zones, driven by regional supply and demand anomalies.
Current season grain values are trading at significant premiums to new season values as anticipation grows of a return to normalised northern hemisphere production dynamics, and tight supply situation prior to this new crop competition commences.