Got a message from Canadian buddy yesterday how’s grain prices here.
Flat to easing in wheat, rising slightly in barley canola about $100 to 150 of harvest highs.
But there’s a trick to all this now.
Australia’s peak shipping is late December to June.
Everyone knows when vessels come in and what cargo is, legislation when single desk dismantled in our state that all shipping stems be known 10 weeks ahead. Commodity, Tonnes but not grade.
As harvest progresses here grain in silo or elevator system is known to buyers exact tonnes and grade and stacked averages of protien. Buyers have access to growers unsold tonnes in each elevator if growers choose to disclose most do.
So the trick is to know who accumulated a lot of grain and who didn’t brokers are the trick here. Also get a fair idea during harvest, company A has good prices for say three weeks then just drops prices $20 below best bids rest assured they have accumulated enough tonnes for the moment. Company B conversely might be $20 below all harvest ie have no interest in buying yet.
Most days around 15 buyers active within a few bucks of each other then payment terms etc come into play and spread prices. Best terms 3 days.
So right at the moment we have a company B operating at moment. Active prices per harvest about a month before real good prices above the market. Accumulating grain pre harvest. Then during harvest they were crap, so assumption was at the time they had enough grain on there books.
Well they have a vessel due to dock in I think feb 16th. Last 3 days came in like a winter blizzard $22 above market. Meaning they obviously have a shipping short and scrambling for tonnes. Call it basis if you wish.
Grain buyers bid for shipping slots mid year.
So yeah world prices can be slipping but rising here due to shipping.
Maybe your system is much easier than our complicated system. Was all nutted out before single desk got transitioned out.
Not sure how austcanada system in WA works may have less buyers over there not sure dominated by 3 companies possibly.
Currently feed barley port $330 and standard wheat $ just short of $400 per tonne $398.
Take of $28 to get on farm price for me.
Enjoy your weekend.
Oh PS foward pricing for 22 harvest is hot some days canola especially.
Flat to easing in wheat, rising slightly in barley canola about $100 to 150 of harvest highs.
But there’s a trick to all this now.
Australia’s peak shipping is late December to June.
Everyone knows when vessels come in and what cargo is, legislation when single desk dismantled in our state that all shipping stems be known 10 weeks ahead. Commodity, Tonnes but not grade.
As harvest progresses here grain in silo or elevator system is known to buyers exact tonnes and grade and stacked averages of protien. Buyers have access to growers unsold tonnes in each elevator if growers choose to disclose most do.
So the trick is to know who accumulated a lot of grain and who didn’t brokers are the trick here. Also get a fair idea during harvest, company A has good prices for say three weeks then just drops prices $20 below best bids rest assured they have accumulated enough tonnes for the moment. Company B conversely might be $20 below all harvest ie have no interest in buying yet.
Most days around 15 buyers active within a few bucks of each other then payment terms etc come into play and spread prices. Best terms 3 days.
So right at the moment we have a company B operating at moment. Active prices per harvest about a month before real good prices above the market. Accumulating grain pre harvest. Then during harvest they were crap, so assumption was at the time they had enough grain on there books.
Well they have a vessel due to dock in I think feb 16th. Last 3 days came in like a winter blizzard $22 above market. Meaning they obviously have a shipping short and scrambling for tonnes. Call it basis if you wish.
Grain buyers bid for shipping slots mid year.
So yeah world prices can be slipping but rising here due to shipping.
Maybe your system is much easier than our complicated system. Was all nutted out before single desk got transitioned out.
Not sure how austcanada system in WA works may have less buyers over there not sure dominated by 3 companies possibly.
Currently feed barley port $330 and standard wheat $ just short of $400 per tonne $398.
Take of $28 to get on farm price for me.
Enjoy your weekend.
Oh PS foward pricing for 22 harvest is hot some days canola especially.
Comment