Despite the significant fall in US futures at the end of last week and the higher Aussie dollar, our local markets have shown a stubbornness to move lower. Not surprisingly, offers have held their ground with bids stepping down slightly to look for value.
Delivered Downs wheat is currently offered in the high 330’s for prompt delivery with no bid against it. The deferred months are getting more interest with April to September quoted at 334//337. New season is also starting to garner interest with the downs quoted wide at $295//307 for January 2019.
Sorghum continues to stay strong with harvest underway. Brisbane track Sor1 for Mar/Apr largely unchanged to last week around 330 with Newcastle track roughly at evens.
Desi chickpea exporters were again shocked to discover the import duty for their product would jump from 40% to 60%. By contrast, Kabuli chickpea exporters were relieved to see the country create a new entry for their product, with the import duty remaining at 40%. Previously, Kabuli and Desi chickpeas were covered by the same entry and import duties. Australia expected the Indian government to provide pre-advice of further increases to import duties based on discussions between the two governments, however the latest increase appears to come into effect immediately.
Pulse Australia released its January Pulses export data. Data shows Australia shipped less than 1,000 metric tons of chickpeas to India during the month, but saw Bangladesh, and Pakistan figures surge. Between November and January, shipments to Bangladesh jumped from 32,283 MT last season to 53,648 MT. While movement to Pakistan was strong in January, shipments for the first quarter of Australia's marketing year were down sharply, falling from almost 227,000 MT last season to just under 54,000 MT. Movement to India, on the other hand, is down more than two-thirds at 207,347 MT.
With bids to Australian growers finishing the week sharply lower, the longer term concern could be that production outside India may drop to levels which make it hard to economically cover world production shortfalls that will certainly happen in the future.
Faba beans demand for high quality grade 1 Fiesta/Samira varieties have surged for the snack food industry in Asia following a low production year for its locally produced broad beans. Buyers looking for large size and good (light) colour. Delivered NSW packer bids $310 to $320 depending on quality subject to sample viewing. Delivered Melbourne packer bids $350 to $360 depending on quality subject to sample viewing.