Don’t get caught holding grain in Export Ports.
Growers holding stocks of unsold grain in export ports, run the risk of declining/non-existent buyer activity as buyers fill their shipping programs. Dwindling quantities of unsold grain (less than complete boat loads) and remaining shipping slots running into the start of the Northern Hemisphere winter crop harvest, make this grain unattractive to the trade. Flexi Grain has limited remaining shipping capacity available for March/April shipment.
Barley Market Update
Strong Export demand continues to be driven by a very tight global balance sheet and strengthening Corn values. Australian export pace remains brisk with China dominating sales. Prices are also being supported by dry conditions in Vic and SA and strong feedlot margins. Since the start of the year global feed barley prices have rallied $US20/mt.
Wheat Market Update
Global futures markets have declined from their recent highs on the lack of fresh winter kill concerns and improved weather outlook for the Argentine Corn crop. Global cash prices remain largely unchanged, supported by tight fundamentals. Local prices remain resilient due to a lack of grower selling. Australian export pace is slow at the moment potentially building up carryout levels into the end of the marketing year, which will pressure local prices even if global prices firm.
The recent weakness in global futures markets may present opportunities for growers to get exposure to global prices. Low risk exposure to global wheat futures markets via the use of Call Options may be a prudent strategy for growers wanting to participate in any rally in global futures markets rather than holding physical grain in Australia.
Flexi Grain Harvest Tonnage Program – Program Payment Options.
Contract your grain into Flexi Grain’s Harvest Tonnage Program – Closing 28/2/25
Regards,
Sam
