US buoys grain prices

25 Jan, 2013 09:18 AM
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11
 

AUSTRALIAN grain prices continue to be supported by ongoing feed demand in the United States and a colder-than-usual northern hemisphere winter, according to Emerald Grain.

Emerald general manager risk and pricing David Johnson said the short-term price outlook for wheat, corn and soybeans remained bullish.

“Wheat is becoming competitive in the US feed ration again as corn stocks decline," Mr Johnson said.

“On the weather front, the US plains remain dry and very cold.

"The Russian wheat area is also very cold with limited snow cover in the south, increasing winter kill risk.”

Mr Johnson said last week was a big week for US soybean exports.

“The US is far in advance of its soybean sales, ensuring carry-out of beans is small," he said.

“There are only so many beans left to ‘theoretically’ price.

“Brazil’s bean crop is in very good condition, while a drier outlook for Argentina is giving the market something to look at for both beans and corn. Argentina’s corn crop is coming into pollination and needs moisture.”

Mr Johnson said the Canadian canola crush was setting a record pace and canola values would need to rally to slow it.

“Combined with ongoing speculation of potential import of Australian canola to China, there is a positive outlook for Canola prices.”

Mr Johnson said the next month or so would offer good opportunities for Australian growers to sell old and new crop.

“In the short term, we should see prices hold at current levels and perhaps even some upside. But it’s important to keep in mind that as the market focuses on weather, any change in forecast could bring volatility."

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READER COMMENTS

Love the country
26/01/2013 9:08:52 PM

White amazing, just check the farm press,notice all the clearing sales in grain areas of wa. Fact,if they were making money, there would be no sales.our terms of trade is killing Aussie farmers, name any Aussie grower doing well ! Yep none, sheep, cattle, grape, oranges, what ever all battling. Remember, we must produce cheap food for the people, bugger the farmer.
Zero till
28/01/2013 3:16:33 PM

If its that bad sell up and do something else. I reckon there are plenty of farmers doing well in NSW. We have had a run of very good seasons for cropping with good prices. Cotton has had a good run. I don't run stock but the lamb job has been good also. If the season can deliver then another good year could be on the cards. Plenty of things go wrong in farming at times but at the moment I'm very happy with the last few years and so is my bank manager. Please stop complaining!
what the
28/01/2013 6:41:02 PM

Bloody hell Zero till, where in NSW do you live, Liverpool planes i'm guessing??? Your comments couldn't be further from the truth. Most farmers I speak with are just treading water at best. I would suggest sticking with commenting on your own patch of dirt, not making inaccurate statements like that.
THE FARMER
28/01/2013 9:10:53 PM

So $130 back to $65 is a good job zero tool .With record numbers of W.A farms up for sale its just not possible to sell because the Chinese are the only ones with the ready .No cotton here and if Big John can't make it no one can .
graingrower
29/01/2013 12:17:07 AM

I am in Canada at present, price delivered to the local silo (Elevervator) 1100 km from port is $608 AUD today (net to farmer), Price delivered to a east coast Silo (elervator) 430km from port is $505 AUD. (net to farmer) Australian graingrowers are getting fleeced by the trade and our storage operators.
X Ag Socialist
29/01/2013 2:22:09 PM

graingrower, that must be last years grain and for the domestic market .
Zero till
29/01/2013 7:04:22 PM

I'm at least a few hours from the Liverpool plains. We have had plenty of dramas over the years wet harvests in 2010-11 and back to back shockers in 06-07 when WA nailed it. As far as my patch is concerned plenty has gone wrong over the last few decades but we still have managed to keep a family business successful and viable.
Graingrower
30/01/2013 2:47:57 AM

No, delivered today at Elervator, I am at a conference called "farmTech" just walked around the trade show, my numbers are correct. Also it is being exported to china in the main. Even if it was'nt why would a enduser/trader pay $100 over export parity if export parity was in fact the Aust price. For your interest the rail freight is $45 per t for approx 1100km over the Rocky's. Privatly owned Hmmmm.
X Ag Socialist
30/01/2013 1:52:11 PM

Yes Canadian farmers are delivering last years grain today Go ask a Canadian farmer when harvest 2013 starts .
graingrower
31/01/2013 2:24:41 AM

X ag Socialist, so a Canandian grower who has unpriced i.e unsold Canola in his silo on his farm delivers this today to a Silo 1100km from port, and due to the fact the canola was harvetested in Aug/Sept it is sudenly worth $100 more on the cash market on the same day it is worth $100 less in Australia who is cheaper by sea freight to China where most of the canola from this area is going. You must work for a vested interest to use your logic.(spin)
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