Global wheat prices are under pressure from the North Hemisphere’s higher wheat production and better harvest conditions. Demand for Australian wheat exports is low as SEA millers are progressively showing interest in wheat from the Black Sea region. In SEA region, we hearing that APW1 quoted at U$280/MT (Sep/Oct) ; AH1 at U$325/MT ; APH13 traded at U$350/MT to CFR SEA main ports in containers.
The oversupply of corn & soybeans from the US and Brazil in global markets causing price pressure on feed markets. China mkt is grappling with declining demand due to weaker economic conditions across the food and feed sectors. This week we are hearing Ukr barley priced under U$240/MT ; RU priced at U$250/MT to CFR China in containers & offers for Australian barley at U$265+ due to lower stock availability till new crop. There is minimal demand for Australian red sorghum in China, offers quoted at U$280/MT to CFR Tianjin (Aug/Sep) in containers. No interest in kaspa peas & green mung bean.
In Pakistan, we are hearing that pulse markets across nation have shut down for a three-day strike to protest against the government’s taxation policies. There is slow demand for Australian lentils, trading at U$665/MT & minimal demand for Australian desi chickpeas, current crop offer quoted at CHK1(23/24) at U$880/MT; CHKM at U$ 840/MT – (Aug/Sep) & new crop offers quoted at U$835/MT – (Nov/Dec) to CFR Karachi in containers. Also heard that Tanzania desi chickpeas trading at U$840/MT to CFR Karachi past few days with reported offers now in range of U$820-U$825/MT.
In India, trade activity for Australian red lentils reported trading at U$660-665/MT CFR Kolkata -(A/S) in containers this week. Currently, the demand for Australian desi chickpeas remains low with limited buying interest amidst low offtake by local chana millers. Traders awaiting festive demand to pick up this month. New crop Australian desi chickpeas offers limited due to container freight uncertainty, old crop Aug/Sep offers at U$880/MT CFR India main ports basis.
In past week, the global oilseed markets experiencing declines, especially in the rapeseed, canola & soyabeans. Hearing trade offers for Australian canola at U$665/MT; Ukraine rapeseed at U$635/MT to CFR Birgunj (A/S) in containers.
In Bangladesh, demand for Australian red lentils, desi chickpeas, canola & kaspa peas is low.
Crop progress for Queensland and New South Wales is in good to excellent conditions across most growing areas. Cold weather and frosts in most areas this past week which at this stage of crop will not be detrimental. Growers seem to be confident on chickpeas crop potential, however forward sales by growers is still very limited and will remain so till closer to harvest as Indian demand continues to be stable.
Victoria crops are still in post-emergence stage due to late rains for germinating crops. The crops will require continuing cold weather and in crop rain in Aug/Sep to get some growth, earlier than late Sep hot weather will be detrimental and cause yield potential to be lost. Lentils prices in upcountry Victoria have continued to track lower dropping A$30 pmt in the past week following price corrections in ISC. Ongoing concerns for new crop yield potential will limit grower sales of remaining old crop tonnes at these price levels.
South Australia crops also remain underfed on in crop rains receiving an average 5 mm only past 10 days and will require higher amounts of in crop rain in Aug/Sep to maintain yield potential.
Western Australia grain growing regions continue to see in crop rain and crops will maintain yield potential on extended cold wintery conditions allowing crops to tiller.
Disclaimer: Prices mentioned are for indication purpose only
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