Another week has passed with no significant rainfall to report.
Central Queensland did get some isolated falls of 10-15ml, but more is needed to push sowing into full swing.
There is some widespread rain predicated for the weekend which looks positive for the majority of western east coast cropping areas.
If this eventuates it will be just what the doctor ordered as the majority of northern NSW and Queensland have pulled up sowing due to the recent dry weather.
Grower selling activity has continued to tick over, although sporadic, as nearby delivered markets are still starved of liquidity with growers focusing on other areas than marketing at present.
SFW1 delivered Newcastle continues to bid in the low $240’s for May/June delivery. Additional commitments have been made, predominantly by growers with freight who are looking to backload fertiliser.
We also saw some flat priced canola trade into Newcastle’s domestic markets at $580 May/June delivery.
New crop chick pea markets remain quiet. Buyers are relatively inactive and sellers are causally enquiring, mainly for monitoring purposes.
Some new crop hectare contract bids reappeared into the market late this week at $760/MT delivered packer central NSW for October/November delivery with minimal commitment from the sell side. It appears growers who have interest in forward selling this early in the piece have already done so.
Most are still waiting for the crop to be sown and emerge prior to making any further commitments.
New crop canola values firmed last week with track Newcastle prices topping out in the high $530’s for November/December delivery.
Growers are aware canola acres will be up this year and are interested in getting some type of forward coverage to protect them from any downside risk. Unfortunately, the recent dry has sellers shying away from any type of physical commitments at present as it’s just too early to make the call.
*Below prices as at Friday, May 12, 2017