Container freight has become tighter due to equipment shortages, Asia transshipment port congestions and capacity reduction by shipping lines to manage the port congestion. Freight surcharges of up to U$300/teu-U$500/teu have been implemented to select long haul destinations and existing bookings are being cancelled by shipping lines on account of reduced capacity. Australian exporters & traders are being cautious on their export trade offers and with uncertainty on freight in Q4,2024 export trade liquidity on both current and forward new crop business is reduced.

Australian wheat is not in significant demand with SEA millers amidst abundant northern hemisphere supplies at lower prices. We have heard that APW quoted at U$290/MT; ASW at U$285/MT; APH2 at U$370/MT & AH1 trading under U$325/MT to CFR SEA major ports in containers. 

In China, there was some trade activity for Australian red sorghum, trading between U$285-U$290/MT – CFR Tianjin (Aug/Sept) in containers this week. Trade volume has been very limited with buyers in China now showing interest only at U$280/MT CFR Tianjin basis.

No demand in kaspa peas & green mung beans in China.

On Australian barley, sellers quoted under U$270/MT to CFR China major ports in containers with limited volumes trading high U$260โ€™s & we have heard that Ukraine barley priced under U$240/MT to CFR China in containers this week.

Demand for Australian red lentils in India are limited, & trade flow of Australian desi chickpeas is slow. This week hearing current crop offers for CHK1(23/24) at U$870/MT; NIP1/HAL1(23/24) at U$710/MT for Aug/Sept period & forward new crop offers quoted for CHK1(24/25) at U$840/MT; NIP1/HAL1(24/25) at U$700/MT at CNF India (Nov/Dec) in containers. Some business reported of red lentils at U$700/MT this week. Heard that Tanzania desi chickpeas quoted at U$835-840/MT to CNF India (Aug/Sept) in container. New crop chickpeas sellers for bulk vessel (Nov/Dec) reportedly trading at U$825/MT CNF India port levels.

Following religious holidays, Pakistan market is slowly opening. Hearing trade offers CHK1(23/24) – at U$880-890/MT; CHKM at U$840/MT; NIP1/HAL1 at U$710/MT & Tanzania desi chickpeas quoted at U$860/MT to CFR Karachi (Aug/Sept) in container.

In Nepal, buyers showing lack of interest for Australian lentils, desi chickpeas & canola โ€“ hearing trade offers at U$770/MT; U$905/MT & U$665/MT to CFR Birgunj in containers & also hearing Ukraine rapeseed quoted at U$630/MT. 

Demand for Australian desi chickpeas, lentils, and red lentils is currently low in Bangladesh. Hearing offers for CHK1(23/24) at U$880/MT & kaspa peas at U$505/MT to CFR Chittagong in containers.

In Egypt, sluggish demand for Australian faba beans though recently some upswing in lupins trade has been seen. There has been limited container business to Egypt in the last few weeks as a result of longer transit and limited volumes of availability of both faba and lupins.

On the cropping front โ€“ most crops in Australia are doing well and have benefited from rains in late June and early July. Crop germination and tillering has been good in Queensland and NSW which now seems to be above average yielding crops. South Australia and parts of Victoria witnessed late and low volume rainfall in June which resulted in areas having patchy germination which may result in average to below average yields โ€“ continuing good weather and rainfall at regular intervals throughout the growing season will be crucial for yields to be maintained.

Disclaimer: Prices mentioned are for indication purpose only

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