Wheat Market Update
- Global market remains at 3 month highs, well supported by a tight global balance sheet and potential production issues with the winter crop in Russia and the US.
- World corn stocks are predicted to hit 11-year lows later this year.
- Fresh demand from Saudi Arabia and Algeria for hard milling wheat
- Growers in NSW and WA are holding large stocks of unsold wheat which may limit local price participation in any global rally.
- Limited buyer activity across some SA Ports is driving discounted pricing at those sites. Buyer activity will cease when shipping programs are finalised.
- Holding grain at these sites, on the basis of global values lifting, is high risk considering the above challenges, the accumulating costs of warehousing and pending completion of buyer shipping programs.
Flexi Grain Wheat Strategy
- Capture global values, avoid selling in the local cash market, by pooling and selling directly into export markets;
- Participate in any global price rally through ownership of Call Options in the Chicago Board of Trade wheat futures market.
Barley Market Update
- Global supplies are very tight resulting in strong global demand.
- World corn stocks are predicted to hit 11-year lows later this year.
- Growers in WA are now heavily sold resulting in export demand switching to the eastern states. Domestic and Export buyers are now competing for available stock culminating in strengthening prices. Continuation of dry conditions in Victoria and South Australia and increasing feedlot numbers are supporting local prices.
- Limited buyer activity across some SA Ports is driving discounted pricing at those sites. Buyer activity will cease when shipping programs are finalised.
Flexi Grain Barley Strategy
- Capture global values, avoid selling in the local cash market, by pooling and selling directly into export markets. Where possible blend FAQ cargoes to capture FAQ premiums.
Contract your grain into Flexi Grain’s Harvest Tonnage Program
Harvest Tonnage Program – Payment Structure Options
Regards,
Sam
