NSW grain prices had a softer tone last week as the Queensland sorghum harvest kicked off, and weakness in the northern grain markets trickled south.
The most important gain for the Australian grains industry from TPP-11 is improved access to the Japanese market.
Sorghum plantings were projected to increase by 20 per cent over last year’s levels to 180,000 hectares, which now seems unlikely given the continued dry weather.
While 2018 was a year which many are probably glad to see drive out the gate, it did deliver strong grain prices - for those who had it.
The initial rally in December was a positive for wheat as it showed that US futures were able to respond to rising Russian wheat prices, and to some increased sales into major Middle East and North African markets.
Winter crop harvest is mostly complete, and farmers are ready for a well-earned break and an opportunity to reset following a very difficult season.
The 2018/19 cotton season has been forecast to bring a more modest three per cent increase in world consumption growth.
The change to global stock and production numbers are more annoying than of real substance, because it involved changes to Chinese data.