Grain - Hay Report - 5 July 2013
International & National Summary - Grain:
- Over the last week, the June 28 USDA Crop Report and the International Grains Council monthly report again confirmed the prospect of larger crops and rebuilding of global grain stock levels over the course of 2013/14.
- Almost all analysts and commentators support the view of a downward price direction for grains for last half 2013. It is hard to argue against this logic; however there remain a few questions for us to watch here in Australia. For example: (1) the sliding A$ is supporting local grain prices, (2) any news of new demand gives the market a reason to stay firm – as happened with some recent Chinese grain buying, (3) there are limited grain stocks on Australia’s east coast till the new crop starts to arrive in Nov/Dec, and (4) “mother nature” needs to have her say over July-October before the northern and southern hemisphere crops are safe.