The A$ value of CBOT Dec futures has fallen by A$18.91 per tonne over the last week. Our cash prices have fallen by $14 per tonne.This has delivered a $6.50 per tonne lift in basis for those who are using wheat swaps this year. This is important, as it might signal an opportunity to buy
Executive Summary Malcolm Bartholomaeus – Bartholomaeus Consulting P/L The wheat stocks issue is not just limited to the very narrow interpretation of information requirements for an Effective Bulk Wheat Export Market (Pages 10,11 of the Taskforce Report). It is about information requirements for an effective wheat market (domestic and export) in an environment of deregulated
New season wheat prices have been at their highest levels since the end of December last year. A weak Australian dollar, and strong basis levels have pushed Australian wheat prices up, against a steadily declining US wheat futures price. Prices bottomed in March, when it looked as though pressure from all directions would push the market
It is now 12 months since the Russian drought drove wheat prices sharply higher, and although US futures have fallen sharply, they are not down as much as expected, and Australian prices are even stronger relative to US values. Over the last 12 months we have seen The Australian dollar drop as our mineral exports
Harvest pressure in the US is waning. Support for the market is also coming from ongoing use of wheat, particularly Hard Red Winter wheat, in feed rations in the US, and we also have strong export sales of US wheat, particularly to China. It is an interesting market, as the strong use of wheat for
Last week’s USDA Report pushed global ending stocks estimates for the current year down by 8.9 mill t. At 172.4 mill t it will leave global wheat stocks at their lowest level since 2008/09. This drop in stocks seemed to capture the market’s attention, but the reality is that most of the decline was from
