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 Lachy or Scott for further details.
Dry conditions continue over most of SA with very little summer rain to get too excited about with some odd thundery showers across on the EP, little rain expected over the next 20+ days with a bit of a focus turning on the importance of the season break. Pre plant meetings have started to kick off across the state with growers starting to indicate at a possible increase to wheat and barley and slight reduction to canola Ha. Also expecting a small increase in pulses with prices have been relativity firm with some good bids delivered into Adelaide packers. On a malt front, three new varieties were accredited last week, Henley, Grange & Scope, although it is still a little early to determine if there will be market demand for these though.
Grower selling has started to come off the boil as prices have started to ease, but with the majority of the old crop sold focus has now turned to the upcoming season which is only a few months away.
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.