China lifted the trade tariff on Australia’s barley last week. In Australia’s local market barley prices increased by A$30 pmt, however, limited demand as traders works towards sales and more details. We heard trade offers for feed barley at high U$ 270 levels in China last week.
In Australia, local wheat prices increased by A$ 20 pmt, resulting in an uplift in futures.
Export of Australian wheat declined by 44% in containerized business – China, Taiwan & Vietnam were the top buyers; In bulk, export declined by 22% – Indonesia, Thailand & Vietnam are volume buyers in June 2023 as per ABS.
India might abolish the 40% import tax on wheat to control local pricing in the country. As per government there was no proposal to import wheat from India via a government-to-government deal. As per MOA&FW wheat production recorded 112.74 MMT in 2023 compared to 107.7 MMT in 2022. All eyes are on India at this moment as imports in excess of 9 MMT will be a big number to be built into the global trade balance sheet.
Export of Australian Chickpeas increased by 135% & Pakistan remains the top volume buyer followed by Bangladesh & UAE in June 2023 as per ABS.
In Pakistan, we heard a trade offer for CHKM to CFR Karachi at U$ 525 pmt to the final buyer.
Export of Lentils dropped by 39% & India, Srilanka, and Nepal are top buyers in June 2023 as per ABS.
In India, demand for Australian red lentils spiked briefly on Canadian crop concerns, however, expected to trade sideways on the back of consistent demand for the upcoming festive season and increased supply from Australia & Canada. We heard Nipper/Hallmark #1 traded at U$ 670 pmt to CFR Kolkata.
In Bangladesh, the market is not supportive of CHK1 & Nipper/Hallmark #1 no export price parity at the moment.
Global oilseed market price fluctuations are driven by a couple of key factors, with EU crop cuts & US weather & ongoing Ukraine rapeseed export concerns & renewed dryness concerns in Canadian prairies. In Australia local market canola old crop prices following European futures with an upswing of A$25 pmt after a similar drop last week, grower selling is limited for old crop canola and new crop canola due to ongoing concerns of dry spring and limited crop rain last few weeks in the east coast cropping regions.
In Nepal, Australian canola seeds still struggling to find export price parity against cheap Ukraine’s rapeseed.
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