NSW grain transport and storages are being tested to the limit as farmer’s harvest, what is now expected to be, one the largest winter crops on record.
The chatter from the bush telegraph has some terrific yields on cereals being reported and it is impressive to see bunkers building across the bulk handler network.
US agricultural futures markets have experienced some pressure. The exception being soybean futures which have been trading at three-month highs.
One of the biggest beneficiaries of a lower Australian dollar relative to the US dollar are domestic commodities destined for export.
Yields are doing the majority of the leg work in the gross margin equation with reports of 4t/ha and 5t/ha fairly common.
A sustained lift in wheat prices into our 2017 harvest is only likely if global production, and in particular production in the Black Sea region and the US, is curtailed enough to begin pulling back on global wheat stocks.