26 Jul, 2024
venedor0 commentsJuly 26, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (26/07/2024)

Demand for Australian wheat in SEA region is currently subdued as millers have sufficient stocks till Sept,24. Hearing APW are being quoted at U$280/MT & ASW at U$272/MT – (Sep/Oct) to CFR SEA major ports in containers.

Chinese economy is experiencing a significant slowdown in all sectors, resulting in low demand in commodities. The Australian dollar corrected 2% this past week, currently at 0.655 against USD, China’s poor economic performance and resultant commodities slump led to bearish sentiment reflecting upon the A$.

Australian red sorghum (SOR1) containers priced at U$280-283/MT CFR China main ports basis with interests ranging U$275-280/MT; AU barley priced at U$265/MT to CFR China main ports(Aug/Sep) in containers with limited interest from buyers & no buying interest for GMB & Kaspa peas at the moment. Also heard trade offers at RU barley at U$245-250/MT; RU Oats – at U$255/MT to CFR China main ports(Aug/Sep) in containers & UKR Barley priced at U$240/MT in bulk (Aug).

Pakistan maintains a steady trade flow of Australian desi chickpeas, heard trade offers for Australian CHK1(23/24) at U$885/MT – (Aug/Sep) & new crop CHK1(24/25) at U$840/MT – (Nov/Dec); CHKM at U$850/MT – (Aug/Sep) to CFR Karachi in containers. Also heard Russian origin desi chickpeas new crop trading at U$880/MT – (Sep) & Tanzania desi offers at U$870/MT – CFR Karachi in containers.

India’s demand for Australian desi chickpeas is low at the moment, heard offers for Australian CHK1(23/24) at U$875/MT – (Aug/Sep) & new crop CHK1(24/25) at U$840/MT – (Nov/Dec) to CFR Kolkata in container & new crop bulk in vessel offers quoted at U$835-840/MT – (Nov/Dec) to CFR Kolkata/Mundra.

Australian red lentils continued to face a price slump last week due to better new crop prospects on back of rains in Vic/SA and crop certainty ex Canada/Russia adding onto available global inventories. Lower demand from Indian sub-continent as a result of global price cues resulting cheaper market offers. Indian traders still worried with excess government red lentil inventories which they have started releasing in local markets and risk of government intervention on lentils and YP. There is minimal trade activity at Australian red lentils old crop in India, trading at U$680/MT – (Aug/Sept) to CFR Kolkata in containers. Also heard business reported of Canadian lentils trading at U$665-668/MT – (Nov) to CFR India ports.

Limited demand for lentils into Pakistan, we heard offers for NIP1/HAL1 at U$690/MT (Aug/Sep) & trade reported at U$675/MT to CFR Karachi this week; Russian lentils offer at U$690/MT (Aug/Sep); Canadian lentils MD trading at U$680/MT (Sept/Oct) to CFR Karachi in containers.

Egypt is experiencing slow demand for faba beans due to bulk vessel arrival offering at U$540/MT, while current crop faba offers at U$570/MT & Lupins current crop quoted at U$560-570/MT levels to CFR Damietta in containers.

In Nepal, minimal trade demand for Australian lentils, desi chickpeas & canola. Hearing trade offers or GM Canola Min 45% at U$670/MT for CFR Birgunj in containers.

In Bangladesh, limited trade activity in Australian desi chickpeas, red lentils, canola & kaspa peas. Hearing trade offers of NIP1/HAL1 at U$710/MT – CFR Chittagong – (Sep) in containers.

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12 Jul, 2024
venedor0 commentsJuly 12, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (12/07/2024)

Australian red sorghum exports roses to 71% in May,24 compared to previous month & main buyer is China as per ABS. Demand is low for Australian sorghum, hearing recent trades reported at U$290/MT for CFR Qingdao in containers this week. There is some trading activity in Kaspa peas with trade reported at U$455/MT to CFR Tianjin (Jul/Aug) in containers this week.

Australian feed barley exports dropped by 31% in May,24 compared to previous month, while malt barley fell by 71% during same period & major importers is China as per ABS. The Chinese buyers are targeting Australian feed barley at high U$250/MT, while sellers quoting at U$275/MT (July/Aug) for containers & bulk priced at U$260-265/MT levels to CNF China. Hearing that Black Sea origin barley such as Ukraine quoted at U$240/MT & Russian at U$250/MT to CNF China (July/Aug) in containers. It also reported that buyers have booked Canadian barley at U$258-260/MT to CNF China major ports.

Australian wheat exports containerized up by 3%, major buyers are Malaysia, Taiwan & Thailand, while bulk exports dropped by 15%; main importer are Philippine & Indonesia as per ABS. In SEA region, APW1 quoted at U$305/MT in container & bulk priced under U$300/MT to CFR SEA major ports; ASW quoted at U$280/MT & H2 quoted under U$300/MT to CFR China major ports in containers. 

Since Indian government has recently set a stock limit on pulses, leading to a minimal demand of Australian desi chickpeas for couple of weeks. Hearing recent forwards trades reported of CHK1(24/25) at U$845/MT to CNF India (Nov/Dec) in containers. Some trade activity in Australian red lentils this week, hearing trades reported at U$730/MT (Aug/Sept) in containers.

In Pakistan, there is minimal demand for Australian lentils & strong demand for Australian desi chickpeas. Hearing trade offers for NIP1/HAL1 at U$735/MT (Jul/Aug); CHK1(23/24) at U$875/MT (Aug/Sept) & CHKM at U$840/MT (Jul/Aug) to CFR Karachi. A few trades have been reported for CHK1(23/24) at U$860/MT & CHKM at U$835/MT in containers & also heard that Tanzanian desi chickpeas have traded at U$855/MT to CFR Karachi.

In Nepal, minimal trade movement for Australian desi chickpeas, red lentils & canola – hearing offers at U$900/MT; U$775/MT, & U$665/MT to CFR Birgunj in containers.

In UAE, buyers are targeting Australian red lentils new crop at U$720-725/MT levels to CFR Jebel Ali in containers

In Bangladesh, no trade activity in Australian desi chickpeas, red lentils, canola & kaspa peas.

Exports of canola increased by 4% in May,24 compared to previous month & major importers are Pakistan & Japan as per ABS.

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5 Jul, 2024
venedor0 commentsJuly 5, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (05/07/2024)

The Chinese market has been experiencing a slowdown and fluctuations in demand over the past 1.5 months. Australian red sorghum has been quoted at U$300/MT for CFR China major, whereas buyer’s target price remains at U$290/MT as spot market is weak & traders are losing money at the moment.  

Australian barley enjoys strong local demand, yet it contends with intense competition from Black Sea barley in China. Bulk Australian barley is priced below U$265/MT, Russian barley quoted at U$250/MT, Ukrainian barley priced at U$240/MT for bulk & under U$255/MT for containers, and Canadian barley is trading below $260/MT (Jul/Aug) to CFR China in containers.

Currently, there is a lack of buying interest in Kaspa peas owing to low demand, with spot market rates hovering around U$430-435/MT. Similarly for Australian GMB – P grade quoted at U$950/MT to CFR Qingdao, lack of buying interest as buyers prefers cheaper options such Kenya at U$800/MT, Myanmar at U$805/MT; Argentina at U$730/MT; Madagascar at U$880/MT; Brazil at U$805/MT. 

In SEA regions Australian wheat – APW1 quoted at under U$295/MT; APH2 at U$365/MT; AH1 at U$335/MT to CFR SEA major ports in containers & also we heard that ASW quoted at U$285/MT; H2 at U$310/MT levels to CFR Qingdao in containers with no firm buying interest.

The Indian pulses market has experienced minimal activity over the past two weeks. The market for desi chickpeas has seen a slight decline, leading to lack of buying interest. Consequently, CHK1(24/25) new crop was traded at U$825/MT (Nov/Dec) & trade offers CHK1(23/24) old crop at U$850/MT to CNF India in containers. Furthermore, there is a subdued demand for Australian lentils, with offers standing at U$745/MT to CFR Kolkata (Jul/Aug) & forward trade offers at U$720/MT (Nov/Dec) to CFR Kolkata in containers.

Pakistan’s market has experienced a decline this week. Hearing trade offers of CHK1(23/24) at U$865/MT; CHKM at U$805/MT; NIP1/HAL1 at U$760/MT to CFR Karachi (Jul/Aug) in containers with limited buying interest. As heard from market sources that local market prices for CHKM is improved to U$785/MT & nipper at U$750/MT levels this week.

Bangladesh market is quiet – sentiments are bearish from buyer due to high prices of desi chickpeas, red lentils, canola & kaspa peas. Hearing from market source that local market prices for red lentils at U$715/MT & desi chickpeas at U$795/MT levels.

Sluggish demand in Nepal for Australian lentils, desi chickpeas & canola at the moment. Hearing offers of canola at U$675/MT; NIP1/HAL1 at U$775/MT; CHK1(23/24) at U$895/MT levels to CFR Birgunj in containers.  

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28 Jun, 2024
venedor0 commentsJune 28, 2024Weekly Market Update

Grains, Pulses & Oilseed Market Update (28/06/2024)

Wheat markets continued to track lower this week with ongoing harvest in Russia boosting confidence of Russian exporters. B Sea to SEA – 11.5% pro wheat in containers reported as trading into Indonesia U$261/MT for Aug/Sep; FW offers reported in bulk low U$260’s CFRLO Thai port. Concurrently, Australian wheat prices have fallen, with the SEA region’s APW1 being quoted below U$295/MT CFR SEA major ports.

India’s pulses basket experienced slower trading this week due to traders re-adjusting and re-aligning trade positions according to recent statutory directives on stock limits and imports. The Indian government expects pulses basket prices to cool off in Jul/Aug period on increased imports of pulses from Africa countries and increased planting of Tur in Karnataka and Maharashtra though increased production is subject to sufficient monsoonal coverage.

The Indian government has recently imposed stock limits on pulses until September 30, 2024, and on wheat until March 31, 2025, to regulate prices and reign in food inflation.

Currently Australian desi chickpeas CHK1(23/24) are quoted at U$840/MT (Jul/Aug) & new crop CHK1(24/25) quoted at U$850/MT (Oct/Nov); U$840/MT (Nov/Dec) CNF India main ports in containers basis. There is minimal trading activity in Australian red lentils, with prices ranging from U$730/MT (Jul/Aug) to CNF India main ports in containers.

Post-Eid holidays, the Pakistan market has seen some trading activity. The current crop of Australian desi chickpeas (CHK1) is traded small volumes at U$835-840/MT, with trade offers for CHKM at U$815/MT and NIP1/HAL1 at U$750/MT, CFR Karachi (Jul/Aug) in containers. Shipping containers to Karachi ongoing challenge with limited shipping lines providing service ex Australia.

All agriculture commodities are experiencing low demand in China; Australian sorghum is being quoted at U$300/MT, CFR China major ports, though buyers are aiming for U$290–292/MT (Aug/Oct) coverage. Kaspa peas are quoted at U$500/MT to CFR Tianjin, but there is low buying interest as bids stand at U$450-455/MT. Australian GMB – P grade is offered at U$985/MT to CFR Qingdao, while buyers show more interest in the cheaper grades of GMB from Australian GMB – M grade under U$810/MT, Argentina under U$750/MT, Brazil under U$805/MT, and Myanmar under U$800/MT.

In Egypt, minimal demand for current crop of Faba beans & Lupins offers are quoted at U$550/MT & U$535/MT to CFR Damietta in containers (Jul/Aug).

In Nepal, there has been some trade activity in Australian red lentils at U$785-790/MT levels to CFR Birgunj & GM canola min. 44% – quoted at U$665/MT & CHK1(23/24) at U$890-895/MT to CFR Birgunj in containers

The Australian winter crop is in good stage of progress. Seed germinating rains have got crops up and running but follow up rains are crucial in some low subsoil moisture regions in South Australia/Victoria and Western Australia. Central Queensland received major crop boosting rains this week with almost 1-2 inches rains on all cropping areas which will significantly boost their chickpeas production. QLD and NNSW chickpeas are also planted on good sub-soil moisture and getting decent followup rains. Lentils in SA and VIC still need to see a major rain event to boost potential as they were planted on low sub-soil moisture and continue to receive only 5-10 mm each rain event in June.

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venedor0 commentsJune 21, 2024Weekly Market Update

Grains, Pulses & Oilseed Market Update (21/06/2024)

Wheat is on decline again this week on US harvest pressure selling and improved/factored in crop for Russia(vicinity of 81-83mmt) & Ukraine(vicinity of 20-21.5mmt). Australian wheat prices followed global cues and declined up to A$9/MT this week. Weak demand from the SEA region with APW being quoted below U$295/MT; APH2 quoted below U$370/MT to CFR SEA major ports.

Australian barley is uncompetitive as domestic values have remained strong on back of limited stocks and dryness in SA & WA. CFR China ports heard quoted at U$280/MT but trade offers from other origins, such as Ukraine barley – U$255/MT; French barley below U$270/MT, & hearing trade reported of Russian barley above U$250/MT in bulk.

China demand across all commodities is sluggish; low consumptive demand and summer heat partly to blame. The demand for Australian sorghum remains stable with trade offers quoted at U$300/MT to CNF major Chinese ports (Jul/Aug). A few trades have been reported at U$295/MT to CFR Tianjin (Jul/Aug) in containers but very limited interest from buyers as they start receiving US sorghum and ample availability of stock limits trade margins.

China’s mung bean market is currently quiet, with spot market prices rising despite a drop in Chinese buyer demand. Trade offers are quoted for Australian GMB-P grade at U$980/MT to CFR Qingdao in containers. Buyers though are reluctant to purchase due to expectations that summer consumptive demand is waning.

Indian pulses markets have remained flat this week after a few weeks of price appreciation. The new Indian government has settled in post elections and traders now look for cues on market demand and government positions. India’s desi chickpeas market is experiencing a sideways trend, with trade offers are being quoted for Australian desi chickpeas no.1 (24/25) – U$860/MT (Oct/Nov); U$835/MT (Dec/Jan) – CNF India ports in containers. Additionally, there are some trading activities on Australian red lentils, with trade reported at U$735/MT levels to CFR Kolkata (Jul/Aug) & forward trade offers quoted at U$715-720/MT (Nov/Dec) to CNF India in containers.

Recently Indian government announced attractive MSP for Kharif(Summer) crop procurement. Summer pulses crops like Pigeon Peas(Tuar) MSP increased 7.86% and Black Matpe by 6.47% over previous year signifying importance of pulses price directions to keep Indian farmers motivated to grow more pulses.

India Meteorological Department (IMD) advises June monsoon has stalled leading to 20% below normal June precipitation in central and NW India. Kharif crop sowing in June/July may be impacted by low rainfall in key northern states.

Pakistan, Egypt and Bangladesh markets have been on EID holidays this week and are opening slowly.

In Nepal, there are trade inquiries for Australian GM canola, but there is minimal buying interest in Australian lentils and desi chickpeas. Trade offers are being heard for NIP/HAL1 at U$795/MT and CHK1 at U$900/MT to CFR Birgunj, with GM Canola quoted at U$650/MT to CFR Kolkata.

Container supply chain is facing increased freight costs, with predictions suggesting ocean freight costs could reach Covid era peak by 2025 in China/Europe route due to red sea security situation and longer route via cape affecting transit as well as significant tranship port congestion. Ex Australia, we have seen rate increases implemented into Asia and SE Asia to the tune of 10-25% for Q3.

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venedor0 commentsJune 7, 2024Weekly Market Update

Grains, Pulses & Oilseed Market Update (07/06/2024)

According to the latest ABARES report, the forecast for winter crop production in 2024/25 is as follows: Wheat – 29.1MT, Barley – 11.5MT, Canola – 5.4MT, Lentils – 1.6MT, Chickpeas – 1.1MT & Lupins – 1.39MT.

Last week, the weather in Russia and Ukraine turned out better than expected, which caused the global wheat market to dip. Australian wheat market also experienced a price decline, dropping by A$10-12 nationwide. In SEA, APW is quoted at U$312/MT; APH2 at U$350/MT levels to CFR SEA major ports.

The Chinese market is currently stable to low due to weak demand. Australian sorghum is quoted at U$305/MT levels CNF China major ports, attracting limited buyer interest. However, buyers are looking at cheaper sorghum from the USA and Argentina origin; market reports suggest that USA sorghum is trading in bulk at U$296/MT, while Argentine sorghum is trading in bulk below U$260/MT to CNF China major ports.

Australian GMB – P grade is being quoted at U$1020/MT levels to CFR Qingdao with limited buyer interest as buyers receiving offering of GMB from Myanmar origin at U$810/MT levels to CNF China ports. 

Australian MALT1 barley is quoted at U$310/MT for CFR Tianjin in containers, yet buyers are opting to wait as the prices are not viable. Similarly, for MALT FAQ barley, buyers’ bids stand at U$272/MT for containers, which is considered far too low given the high origination prices in Australia.

KASPA PEAS demand is minimal, as we heard trade offer quoted at U$505/MT to CFR Tianjin while buyers bids remain at U$470/MT levels.   

Pakistan’s market has been sluggish for the past four weeks; no demand coming for Australian red lentils & desi chickpeas. As we hearing NIP1/HAL1 being quoted at U$755/MT; CHK1 at U$920/MT & CHKM at U$840/MT levels to CFR Karachi (Jul/Aug) in containers.

India’s desi chickpeas demand has remained steady; however, there was no trading activity last week due to the expected election results. Offers quoted at CHK1 at U$910/MT to CNF India in containers (Jun/Jul). Australian red lentils demand is minimal at the moment, as we are hearing NIP1/HAL1 offer quoted at U$745/MT to CNF India in containers. As we learned from market sources that Tanzanian desi chickpeas trading at U$875/MT to CNF India (Aug/Oct) in containers.

Nepal’s market is currently not showing interest in Australian desi chickpeas, red lentils, and canola; as trade offers at quoted at U$935/MT; U$805/MT & U$680/MT levels to CFR Birgunj in containers (Jul/Aug) in containers.

Egypt’s market experiencing sluggishness in Faba beans & Lupins demand.

In Bangladesh, getting few inquiries for Australian canola & Kaspa peas. 

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venedor0 commentsMay 31, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (31/05/2024)

All eyes on Russia and Ukraine weather concerns presently. There have been significant downgrades to Russian wheat crop on account of frosts and dryness in key growing areas although some rains now forecast. Yield potential (more likely in vicinity of 80 – 85 MMT) is still a large unknown until harvest, which is weighing on traders pricing of forward new crop business on both cereals and pulses from those origins.

There is talk of India eliminating its wheat import duty which will likely see an import volume of wheat about 5-6MMT June onwards. GOI working front foot to build its buffer wheat stock purchasing 26.24 MMT vs target of 31 MMT with Indian growers holding back on sales anticipating higher prices.

This week Australian wheat prices have risen due to increased offshore market demand and dryness affecting most parts of the country. In SEA, APW trade reported below U$310/MT levels to CFR SEA main ports in containers.

In QLD & NSW, desi chickpea planting is progressing well. More barley acres reportedly being diverted to chickpeas. We are largely expecting upto 1 million ha being planted to chickpeas between the two states. There has been robust demand for Australian desi chickpeas in India, trades are reported at U$900/MT for Jun/Jul shipments & forward trade reported at U$875/MT for Nov/Dec to CNF India in containers.

Lentils have been planted dry is SA and VIC, however this week between 10-25 mm rain has fallen on SA cropping region which will boost sentiments. Trade demand for Australian red lentils is stable, as we heard trade reported at U$745/MT – J/J shipment to CNF India in containers.

The lack of firm demand for Australian lentils and desi chickpeas from Pakistan over the past three weeks. No trade movement in the market as we are hearing trade offers quoted for NIP1/HAL1 – U$755-760/MT; CHK1 – U$920/MT; CHKM – U$810/MT to CFR Karachi in containers with no firm interest from buyers. According to market experts, there has been a significant price surge in the Pakistani local market this week, with CHKM reaching U$700/MT and NIP/HAL1 reaching U$715/MT. 

Lack of participation from Nepal for Australian red lentils, desi chickpeas & canola as prices are not workable for business at the moment. We heard trade offers for NIP1/HAL1 at U$810/MT to CFR Birgunj in containers. 

Bangladesh is not participation due to slow demand for Australian desi chickpeas & lentils & also no price parity in the destination market at present. Getting some inquiries for Kaspa peas.

Chinese market is currently seeing a dip in demand. Australian sorghum is being quoted at U$300/MT to CNF China main ports for July/Aug shipment with limited buying interest, as buyers are eyeing on to cheaper options such as USA Sorghum & Argentina sorghum. No buying interest for Australian GMB as trade offers at U$920/MT to CFR Qingdao in containers.  

In Egypt, observing minimal demand for faba beans & lupins. As we heard that lupins trade reported at U$510/MT to CFR Damietta in containers. Aus Faba beans have been bid USD540/MT Damietta.

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venedor0 commentsMay 24, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (24/05/2024)

Current weather patterns in Black Sea and the US are causing price fluctuations in the global wheat market. As per market experts that East and West Australia are predicted to experience dry patterns. In SEA, APW quoted at U$319/MT levels to CNF SEA major ports.

The ongoing heatwave in India has resulted in a sharp spike in the cost of vegetables and pulses. Australia’s desi chickpeas, both old and new crop, is in high demand in India. Hearing trade offers as follows :

  • CHK1(23/24) at U$910/MT to CNF India (Jun/Jul) & while new crop CHK1(24/25) at U$875/MT to CNF India (Nov/Dec) in containers.

As we are hearing recent trades have been reported at the following levels :

  • CHK1(23/24) at U$860-870/MT to CFR Nhava Sheva (Jun/Jul) & while CHK1(24/25) at U$830/MT to CNF India (Dec/Jan) in containers.

The demand for Australian lentils in India remains stable, trade offers for NIP1/HAL1 are being quoted at U$740/MT to CNF India (Jun/July) & while forward trade reported for NIP1/HAL1 at U$700-705/MT to CNF India (Nov/Dec) in containers.

The trade activity for Australian desi chickpeas and red lentils in Pakistan has been sluggish over the past two weeks, with no trade movement reported. Demand remains weak, reflecting market condition. As we are hearing trade offers quoted for NIP1/HAL1 at U$750-755/MT; CHKM at U$800/MT & CHK1 at U$910/MT to CFR Karachi (Jun/Jul) in containers.

In China, demand for Australian red sorghum is stable, as we are hearing trade offers quoted at U$312/MT levels to CFR Tianjin (Jul/Aug) in containers & while, bulk cargo of Australian reported trading at U$310/MT levels in July. No firm interest in Australian GMB, quoted at U$920/MT to CFR Qingdao in containers.

In Nepal, we hearing trade offer of NIP1/HAL1 at U$785/MT levels to CFR Birgunj. No demand for Australian desi chickpeas at the moment.

In Egypt, no major demand for faba beans & lupins, as we are hearing that 4 bulk cargoes of faba beans has covered up market demand. As we hearing trade offer quoted for faba beans at U$530/MT to CFR Damietta in containers.

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venedor0 commentsMay 3, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (03/05/2024)

Recent issues in the Middle East and Black Sea regions have led to a firm up of the global wheat markets, propelling prices upward, while the Australian wheat market has strengthened last week. As we are hearing that APW traded at US$289/MT for CFR BMT for July shipment; APH2 being quoted at US$350/MT to CNF major SEA ports.

This week, as China is on holiday, the market demand has slowed. However, Australian red sorghum no. 1 is currently trading at U$285/MT for CFR Tianjin for July/August shipments. There is no firm interest in Australian GMB processing grade, with trade offers at U$940/MT to CFR Qingdao in containers. Similarly, there is no demand for Kaspa peas, with trade offers heard at U$440/MT for CFR Tianjin in containers. Trade offers for Australian barley stand at U$262/MT levels to CNF major China ports.

Since last two weeks demand for old crop desi chickpeas is strengthening, reflecting interest for May/June shipments from ME, Pakistan & Bangladesh. Despite domestic crop in India and Pakistan on harvest now, we are continuing to see strengthening domestic demand strength in both countries and there is expectation that demand will continue to spike towards end of 2024 due to a tight domestic balance sheet on account of lower planted area. Speculative still whether India will allow duty free imports. Trade offers for CHKM have been reported at U$685/MT for CFR Karachi, but buyer interest remains limited while they receive supplies from domestic crop harvest at an import parity basis U$595-U$600/MT. New crop Oct/Nov/Dec shipment slot Australian CHK1 remains strongly bid by traders in Australia and for CFR markets. Australian CHK1 new crop, with market offers seen at U$770/MT (Oct/Nov/Dec) & CHK1 old crop, trade offers at U$750/MT (June/July) for multiple port options.

The demand for Australian red lentils has slowed down. Additionally, trade offeror NIP1/HAL1 are being offered at U$720-U$730/MT to Indian sub-continent ports (June/July) in containers. Market experts indicate that local market prices have decreased, with Nipper at import buying interest basis of U$695/MT.

Trade activity in Nepal is stagnant due to sluggish market demand. Current trade offers for CHK1 are reported at U$810/MT for CFR Birgunj. Meanwhile, canola is indicated at U$650/MT for CFR Birgunj, yet there is no interest from buyers. 

The market demand for faba beans & lupins is weak in Egypt, with very limited business opportunities in containerized trade compared to bulk shipping, as the local crop harvest is near. Trade offers for lupins have been reported to CFR Damietta in containers at U$490/MT with limited buyer interest. Faba beans earlier bid U$505/MT CFR Damietta in containers but this week demand has waned. Very limited supplies in Australia as bulk shippers chasing limited tonnes with aggressive pricing to fill their shipping commitments in May/June.

On crop plating in Australia, WA and SA are dry sowing with both states receiving limited rain. Qld, NSW and parts of Vic have received good rainfall and expecting more this weekend which should be for seed germination and crop growth.

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venedor0 commentsApril 12, 2024Weekly Market Update

Grains, Pulses & Oilseeds Market Update (12/04/2024)

Australian wheat market sees small price increases at grower level earlier this week but wheat is globally still in bearish trend with large ending stocks as per latest WASDE report. Export demand remains low in SEA regions, with APW containers quoted at low U$280/mt – traded U$273/mt Thailand port; APH2 at U$345/mt to CNF SEA major ports with lack of interest from buyers. China continues to cancel US & Australia wheat bulk shipments as they may be looking at other cheaper origins and their own upcoming harvest for lower priced purchases.

The global oilseed markets, purely driven by middle-east security macros have led crude oil and palm oil price surges. Australian canola prices in turn have also been receiving support last week. With rapeseed harvest from Ukraine, May onwards we may see some global downward pressure in physical markets. Canola container business pricing presently unworkable to Nepal at U$620/mt levels.

In India, with the limited arrival of domestic lentils in the local mandi’s and perceived tight pulses crops balance sheet, there has been some activity in the Australian red lentils market. Trades have been reported at US$720/MT levels for CFR Kolkata in containers for June/July shipment in containers. Australia domestic pricing has surged A$40-A$50 pmt in last 10 days. No demand for faba beans in India, as we heard trade offers at U$490-495/mt to CFR Kolkata with no interest from buyers.

Demand for Australian red lentils and desi chickpeas in Pakistan is sluggish, which is also influenced by the ongoing Eid holiday’s. Reportedly, there is limited buyer interest in the trade offer for NIP1/HAL1 at US$715/mt to CFR Karachi this week.

Australian Lentil export shipments surged by 61% in Feb,24 compared to the previous month; India and Pakistan were the leading buyers, as per ABS.

The Australian chickpea market has traded sideways in both new and old crops this week. There has been limited buying activity from countries such as Bangladesh, Nepal, Pakistan, and the United Arab Emirates. New crop 24/25 (Oct-Dec) crop containers trading with multi-port options around U$720/mt CFR sub-continent/ME ports. There has been very limited grower participation in forward selling of new crop chickpeas just yet but we expect this kind of pricing will be strong motivation for growers to increase acreage planted to chickpeas – we will know more in June once crops are planted.

Chickpea export shipments increased by 44% in Feb,24 compared to the previous month; Pakistan and the UAE were the major importers, as per ABS.

Trade activity in Nepal has been observed, with Australian red lentils trading at US$755/mt levels for CFR Birgunj in containers.

In China, the demand for sorghum is currently stable to low for May/June/July shipments, with trade offers heard at U$302/mt CFR Tianjin in containers this week. Rains at harvest in Queensland have been a bit of dampener for Sorghum trade. Sorghum exports dropped by 51% in Feb,24 compared to the previous month; China and Japan remained significant markets, as per ABS.

As we learned on GMB demand that due to the availability of GMB from other origins at lower prices, interest in Australian GMB has diminished; the quoted price for Australian GMB at US$940/mt to CFR Qingdao in containers.

Australian barley trade offers at U$270/mt to CNF China major ports with lack on interest. Barley exports, including feed barley, decreased by 38% in Feb,24 compared to the previous month, while malt barley exports fell by 63% during the same period; China continued as the primary buyer for both malt and feed barley, as per ABS.

Since last 2-3 weeks no significant demand is coming for faba beans & lupins from Egypt as Eid holiday’s going on. Australian faba beans are now on a tight balance sheet with limited availability of good quality beans in Victoria and South Australia. Prices have steadily increased, we can expect some more beans for export container business to only show in July post FY close for growers.

Disclaimer : Prices mentioned are for indication purpose only

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