Egypt have finally decided to loosen the shackles after announcing that they will be accepting 0.05% ergot wheat. It had been suggested that an independent third party are going to be responsible for the inspection process going forward. After three successive state tenders have been cancelled and numerous boycotts followed the Egyptian import market came to a grinding halt. As a result of the Egyptian doors reopening there is a good chance that Russian cash values could rally.
The USDA have announced that a total of 364k of beans have been sold to China,Taiwan and one other unknown destination. With this, 145k HRW had been sold to Morocco with another 116k of sorghum to unknown.
Row crops still have demand butthe main focus has been directed towards yield. Reports are positive in regards to beans as many remain very optimistic.
CBOT Wheat was up 2.5c to 429.25c,Kansas wheat up 4c to 438.75c, corn down -0.75c to 350c, soybeans down -13.75cto 981c, Winnipeg canola up $C0.3 to $C464.5, and Matif canola down -€2.25 to €376.The Dow Jones up 163.74 to 18293.7 ,Crude Oil up 0.25c to 45.6c, AUD up to 0.7641c, CAD down to 1.3065c, (AUDCAD0.9984) and the was EUR up to 1.1198c (AUDEUR 0.6822).
Domestically, upcoming warmer weather and longer days bring hope to water logged areas in the north that are currently suffering from excessive moisture.
The Central West in NSW remains the primary concern with considerable amounts of water through the Bland and Bogan shires.
There is potential for a loss of substantial yields through the Central West with more rain on the horizon in the coming weeks.
There remains considerable upside for surrounding areas that find themselves cashing in on optimal rainfall figures.
- Source: Lachstock Consulting