While mid-term election mania in the US has been dominating the press, cotton is battling its own set of “mid” challenges.
Harvest in Queensland has all but fizzled out, as per the comments from GrainCorp last week suggesting receivals have fallen to just 21,000 tonnes, when this figure stood at 508,000t this time last year.
Prices have recovered from the lows of two weeks ago, after US export data showed a marked improvement
After solid rain across northern NSW during the past three weeks, one would not be blamed for becoming over-excited and pulling the ark out of the shed.
The reason for the sharp rally last Friday night was confirmation that US FOB wheat prices had in fact fallen far enough to be competitive with Russian FOB values into key Middle East markets.
Northern NSW farmers are busy planting sorghum following the October rain, but significantly more rain is required before a crop is assured.
It could well be that the small crop from Australia this year causes barely a ripple in the global market if exportable supplies from elsewhere cover the shortfall from us in the second half of 2019.
As the sorghum sowing progresses, the foot has been taken off the throttle in demand for new and old crop.