USDA report projected a 24/25 season global increase in wheat production of 798.2 MMT, primarily from Kazakhstan, Canada, China, India, Australia, and the US. However, ending stocks projected at a tight 253.61 MMT which was bullish news along with weather impact concerns on Russian crop harvesting in July. Australia is expected to produce 29MMT in 24/25. Northern hemisphere harvest commencing July will determine course on wheat pricing for next season and is expected to be slightly bullish.

The Australian wheat cash markets have closely followed bullish sentiments with cash bids up about A$10 pmt across all port zones. The current prices quoted as per market sources for APW and APH2 stand at U$310-U$320/MT and U$390-U$400/MT range to CNF SEA major ports.

The Australian chickpea market continues to be strong, buoyed by short harvest in India. Market still has not found decent parity with origin bid strongly whilst destination interest remains weak. Trade offers for CNF major India ports stand at U$850/MT for June/July & U$820/MT for Nov/Dec shipments. Domestic markets in India slowly creeping up on pricing due to low arrivals whilst potential of government intervention looms.

Australian red lentils are trading at U$730/MT – CFR Kolkata for June/July shipment. Demand is better this past week though with lower selling by growers in Vic/SA, origin pricing maintains its strength and traders struggle with profitability.

Trade movement for Pakistan destination is stagnant due to low demand for Australian lentils and chickpeas. Reports indicate that trade offers for CHKM are quoted at U$790/MT; CHK1 at U$865/MT ; and NIP1/HAL1 at U$725/MT to CFR Karachi in containers. Market experts suggest that the local market is slow, with CHKM priced at U$665/MT and Nipper at U$700/MT equivalent which is a fair bit off from import values creating disparity.

Demand for Australian sorghum in China remains steady, with trade offers cited at U$295/MT for CFR Tianjin in containers as Chinese buyer showing interest in Argentina’s sorghum trading at 260/MT levels in bulk shipments. A couple of bulk Australian sorghum cargoes reportedly traded for Jun/Jul shipment at U$285-U$290 CNF China ports. Further this week there has been a lack of buying interest for Australian GMB, indicating weak demand, with trade offers for Processing grade at U$920/MT to CFR Qingdao. Australian barley is trading at U$280-282/MT in boxes, with bulk shipments priced at USD 275/MT for CNF China main port. Additionally, Kaspa peas have target buying levels at U$420/MT, contrasting with offers at U$475/MT as Australia origin values remain strong and illiquid. 

Trade movements for Faba beans and Lupins in Egypt have remained stagnant, with Lupins being quoted at U$540/MT for CIF Damietta in containers, yet there has been no notable interest from buyers. Faba beans demand covered by bulk vessels and longer containers transit to Egypt keeping traders away.

In Bangladesh, trade offers for CHK1 have been quoted at U$825/MT CFR Chittagong in containers for Nov/Dec shipments, but there is limited interest from buyers. Kaspa peas quoted at U$490-495/MT levels to CFR Chittagong containers.

In Nepal, we are noticing minimal trade demand for Australian lentils & no firm demands for CHK1, as NIP1/HAL1 trades reported at U$760 CNF Birgunj and quoted at U$765/MT levels.

South Australia, parts of Victoria and WA remain dry which is causing some trade anxiety and lower grower sales participation in current markets. Dryness now may also impact 24/25 crop prospects in these 2 states. Qld, NSW and eastern parts of Victoria are well poised for a good planting due to substantial availability of subsoil moisture. About 70% of winter crop expected to have been planted by mid-May.

Traders projecting a desi chickpeas crop of appx. 1.5 MMT with increased planting intentions on account of extremely good pricing cues of upcountry bids of A$1000 +/-. ABARE June crop report eagerly awaited by trade for crop size and potential.

Disclaimer: Prices mentioned are for indication purpose only

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