Futures market were higher overnight. India imposed a tax on wheat imports. Rain continued to fall in Eastern Australia as the cyclone became a low-pressure system over central Queensland.
Tropical cyclone Debbie in North Queensland is generating beneficial rainfall, which looks like it will provide 25-50mm to the key growing areas in QLD, while also extending down to Northern NSW.
Soybeans and canola futures were down on Friday, HRW wheat KC futures unchanged and Chicago SRW up a little. Australia’s east coast winter crop planting prospect will get a shakeup from this week’s cyclonic influence.
May wheat is now only 15 cents off its January lows…feels hard to justify further selling. All futures were down overnight, as was the Australian dollar – off half a cent.
Australian barley bid prices are lower, in spite of record demand from Saudi and China. Australia mostly welcomes the rain; while the US hard wheat region needs rain, the forecast is hopeful.
Recent rainfall in Australia is seeing improved new crop sentiment, while the forecast remains positive for Qld and NSW.
The big story is the result of the Saudi tender which was announced overnight; 1.5 million tonnes was sold for May-June delivery at values which work back to around $181 track equivalent in Victoria.
Fresh barley business to the Middle East sparks Australian barley interest. Wheat futures had their lowest-volume trading day for the year.
Technical selling took Winnipeg canola futures lower. Saudi Arabia tendering again to buy barley; China might be a further Australian barley buyer, while Australian sorghum containers to China are also rumoured.
Sharp drop in US currency bounced the Australian dollar around a cent and a half. US wheat futures rose around 5 cents/bushell.