Market Report

Date 14TH AUGUST 2007

For the latest in pricing news contact our Echuca office 03 54807344

Overview...

• September wheat finished down at 666'4.
• December wheat fnished slightly higher at 690'4.
• With the slightly higher close this may lead to fears similar of last week and attract significant techinical selling this week.
• With concerns centring around the tighness of world stocks and the outlook that US grain supply will tighten up due to increased demand helped support the market.
• With soybeans gaining strength this helped support the market later in the day.
• Weekly export inspections released during the day were 24.4 million bushels as compared to trade estimates of 16-22 million.
• Egypt have purchased 115,000 tonnes of wheat from Russia over the weekend.
• At the moment South Korea are looking to purchase 46,000 tonnes of US milling wheat.
• Interesting to note that Ukraine exported only 105,900 tonnes of wheat in July compared with 728,100 tonnes in june. This was due to trade restrictions. 

Markets... 13/8/2007

CBOT Wheat  futures  USc/bu, Sept 07 666'4 () USc/bu, Dec 07 690'4 USc/bu, Dec 08 584'0  USc/bu and Dec 09 577'0 USc/bu.

Domestically / General

• Locally and throughout most of Victoria crops are looking very good. More rain over the next couple of weeks is going to be needed to keep crops ticking along and to maintain yield potential.

• Wheat prices haven't changed going into the Melbourne Market. Prices are still at the $315/t del. Barley has firmed slightly to $305/t Del. Triticale is still much the same with the majority of demand for wheat and barley due triticale being harder to access at the start of this year.

• Goulburn Valley prices have firmed to around $310 delivered for wheat, barley and triticale. 

• Different types of hay are starting to be released as farmers holding onto stock are more confident of having enough feed for there stock. Hay of all types is available : Lucerne, Clover, Canola and cereal. Even some dairy farmers are looking to re-sell as they think they will have enough hay to get through to the new season.

• Some hay producers are looking at cutting hay early in September, weather permitting, while some other hay producers are considering cutting some of there current hay crops for silage due to the amount of growth they have reached. They will then look to cut, for hay later on after the crops re-generates itself.

• There are reasonable amounts of rice straw still available with the odd load of cereal straw becoming available also. Prices are reasonable around the $195-205/t Del GV range.

*The information contained in the daily market report is of a general nature only and does not constitute financial advice. The information contained within is drawn from reputable sources and publications and consolidated into the daily market report.

We always suggest you obtain independent financial advice from a AFSL registered service provider.