Offshore markets surge
July 6, 2017
We’ve seen offshore markets surge upwards this week, with wheat easily breaking through the 500USc/bu barrier and reaching one year highs.
This rally came on the back of news from the USDA over the weekend that planting figures in the US are estimated to be the smallest area planted since records back began in 1919, a 9% decrease year on year from last season. This report was followed by a dry weather outlook across the US plains and worsening drought conditions.
Locally, we’ve seen new crop APW1 hit the magical $300/mt mark and F1 barley reaching $240/mt. This, accompanied with s small amount of timely rain has seen some growers lock in forward prices, however overall growers remain undersold in comparison to previous years.