Australian new crop wheat supported at A$250 per tonne
Flat price buying around A$250 a tonne for Australian Premium White grade wheat delivered in January 2010 via rail to Newcastle Port has provided support in the domestic market, according to a statement issued Tuesday by GrainCorp Ltd.
"There are no significant production concerns in eastern cropping areas at this stage, with moisture levels relatively good for this stage of the growing season," GrainCorp said in a brief weekly market review.
There also has been some buying at current market values as some participants take the view there is a lot of growing season yet for the crop to navigate, it said.
This is a reference to the government's Bureau of Meteorology reporting last week that an El Nino weather pattern is developing across the Pacific Basin. El Nino episodes are usually, though not always, associated with below-average rainfall in the second half of the year across much of southern and inland eastern Australia, potentially impacting crop yields.
GrainCorp said demand for wheat dropped over the past week as export demand slowed due to harvest pressure from the Northern Hemisphere, which is adding greater supply to the global market.
Meanwhile, January 2010 feed barley consistently traded on limited volumes below A$200/tonne delivered port for the first time this year, with demand from domestic consumers strengthened in Australia's northeast as the market tested the lows, it said.
The consumer is typically buying hand to mouth as feedlot and dairy margins are uncertain, it said.
Sorghum values remained relatively unchanged over the past week, with Brisbane rail track prices trading around A$185-A$190/tonne on limited volumes, with buying from domestic consumers relatively light, it said.
Domestic canola prices softened over the past week as the world oilseed complex weakened, it said.
"Australian canola crop conditions are looking good, with substantial rain received in South Australia and Victoria last week," it said.
US$1 = A$1.27089 (Jul 14)
