Plenty of headlines to push grain markets around

Whether that be conflict in the Middle East, Russia and the Ukraine, weather in the northern hemisphere generally, holidays in parts of Asia, or economists discussing interest rates and the ensuing impact on currencies, it's been an eventful couple of weeks.

Futures in those markets have been tracking accordingly however the effect on cash markets in Australia has been more subdued.

Old crop markets have remained firm through most of the east coast despite offshore markets settling back from their recent rally.

After an initial increase in grower engagement, wheat and barley through Victoria, NSW and Queensland have generally been refusing to follow offshore markets.

As many growers' attention has switched to sowing, harvest or picking summer crops, the liquidity from the farmer has slowed as the trade and consumer remain on the bid.

The consumptive demand in the northern part of the country has primarily been in the deferred period however sporadic requirements for May and June are still popping up. The domestic consumer in the south is having to compete with the export market adding to the challenge in that region.

The sorghum harvest continues despite some weather delays and concerns around quality. There have been numerous reports of sprouting issues ranging from the not at all to up to 50 per cent in some cases.

The markets for this quality of sorghum have been as varied as the quality itself.

Domestic consumers in southern Queensland have been picking up off-grade sorghum for as little as $250 a tonne while cash bids for genuine sorghum two have been reflective of a $20/t to $30/t discount to the primary grade.

Tonnes continue to flow into both the domestic and export markets, albeit the export has primarily been into containers, and with China back from holidays this week, we could see a renewed interest for our sorghum.

We will need the export demand to continue to maintain current values as current wheat/sorghum spreads are too narrow to facilitate any significant inclusion in domestic feed rations.

Canola markets have recorded the largest changes during the past week or two with east cost bids trading a $20/t range in that time.

Concerns about the escalating issues in the Middle East sparked the rally however attention was soon switched to weather.

The most notable input being excessive rainfall for parts of Brazil putting question marks over the extent of damage to the soy bean crop being harvested there.

The rally in overseas markets flowed to Australian cash bids for canola allowing growers carrying old crop an opportunity to sell out of some of that position, and also some small volumes of new crop trade.