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USDA Report

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USDA Report

15th September 2015

WHEAT

The USDA report released on Friday 11th September (US time) had some bearish news for wheat with both global ending stocks and global wheat production up by 5 million metric tonnes (mt). Canada, Argentina and India all had decreased wheat supplies however this was not enough to counter supply increases from Europe, Russia and the Black Sea.

Global wheat consumption was the shining light, up by 1.6 million mt due in part to increased feed use from Russia, the EU and the Philippines.

BARLEY/CORN

A bullish outlook for corn unfolded on the back of a global production cut of 7 million mt and ending stocks down 5.4 million mt.

US Corn yields down by 20% compared to last year.

Chinese corn production down by 3 million mt to 229 million mt.

CANOLA/BEANS

Global bean stocks were down by around 2 million mt from last month’s report, the estimate now stands at 527 million mt.

Canadian canola producers are battling cold and wet start to their harvest, the weather interrupted start has the potential to effect production and/or quality in the area.

MONDAY 14th September;

CBOT Wheat Dec 15 – 485c/bu (+7)

CBOT Corn Dec 15 – 387c/bu (+12.8)

CBOT Beans Nov 15 – 872.4c/bu (+.2)

ICE Canola Nov 15 – $469.8 Canadian (+2.9)

Australian dollar against US Dollar- $0.7101

Weekly Report 2/8/15

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Wheat

The global wheat market continued to free fall this week, as wheat struggles to find a price that will stimulate demand. Falling a further 25US¢/bu from last week. September Futures finished the month below the US$5/bu mark at US¢496.50/bu. As strong fund selling and large global production prospects for this season pushed values lower.

US Crop Progress and Condition, 85% of the US winter wheat crop has now been harvested, ahead of the 80% five year average, with reports of yields being better than expected. Spring wheat harvest is just getting started with 2% harvested. Spring wheat condition is up one point to 71% good to excellent.

Canada has received some rain last week, but as they are fast approaching harvest, some feel that it might be a little too late. Canadian wheat production forecasts for 2015/16 were reduced by the International Grains Council (IGC). Canadian wheat output is now forecast at 28Mt, down 2Mt from June. This reduction to the Canadian production is supportive for the competitiveness of Australian grain into global markets. Especially as Canada produces high protein wheat that directly competes with Australia.

At a global level, wheat production in 2015/16 is forecast 1Mt lower at 710.3Mt, compared with June. Global wheat stocks in 2015/16 have been revised 5Mt higher in light of lower forecast consumption, adding to an already bearish outlook for this season.

India is reintroducing a 10% import duty on wheat for the first time in 8 years. This comes after sales of 500,000t of Australian milling wheat to India. Indian wheat stocks have built sharply, and the government is keen to curb imports to help support local prices.

Russian wheat prices have been falling as their harvest gathers pace, and after some early rain delays. Grain exports from Russia during the first half of July were almost 60% lower than last year. However, despite the sluggish start, Russian wheat remains the origin of choice for the recent Egyptian tenders. Fob prices for 12.5% protein wheat fell US$6/t over the last week.

To see full report Click the link below.

Weekly Report 15_08_03

New Albany Office

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MEDIA RELEASE

20 July 2015  

GBA expands with new Albany office

Leading independent grains brokering business Grain Brokers Australia (GBA) has expanded its business with the opening of its first regional office in Albany.

The new office, which opened this week, will expand GBA’s on-ground presence, and provide grain growers greater access to grain selling opportunities throughout the Albany, Esperance and Bunbury port zones, and into domestic markets.

The office will be operated by experienced GBA grain brokers Chad Jefferis and Mike Saunders, who will both be based in Albany.

GBA provides grain growers with a full brokering and advisory service, to assist them in maximising returns from their grain sales. This includes price discovery, grain brokering and sales, domestic grain marketing, contract execution and harvest administration.

According to GBA General Manager, Jeff Winspear, the opening of the new office is a significant milestone for the business, and for grain growers in the region.

“Our business has grown considerably during recent years, and we are now very pleased to be opening our first regional office in Albany. We have a growing team who will now be more accessible to farmers across the southern areas of the state.”

“We are already working with a large group of farmers in this area. Now with the increasing grain production, an expanding number of marketing options and some exciting pricing opportunities at the moment, we are receiving more interest in our broking and advisory services.”

“We think having a local presence will enhance our service and reach, and help our clients capitalise on these marketing opportunities.”

“We would encourage growers who are in Albany to feel free to drop in the office and say g’day or introduce themselves to Chad and Mike, and discuss their grain marketing options.”

Chad Jefferis

Chad joined Grain Brokers in May 2015 with a wealth of experience in the agricultural industry. Chad was born and raised in the Great Southern, from the Dumbleyung Wagin area, where he lived and worked on the family farm. Chad has spent the past three years working with Emerald Grain as a grain merchant looking after growers in the Albany and Esperance zones, where he has developed a passion and extensive knowledge of the grain sector.

Mike Saunders

Mike joined the Grain Brokers Australia team in early 2014. After completing an Agricultural Management degree at University in 2001, Mike returned to the family farm in Zimbabwe, where he ran the business for five years producing wheat, barley and corn. He and his family migrated to WA in 2006. For the past nine years Mike has been working as a key account manager, servicing clients throughout the great southern and central wheat belt. Mike has always had a passion for the grain marketing industry and has actively been following the grain market since his arrival in WA.

Albany office details:

12 Peels Place, Albany WA 6330

Phone 08 93672866

Chad      0448 440 177

Mike      0455 111 779

Albany Office staff (00000002)

GBA brokers Chad Jefferis (left) and Mike Saunders in front of the new Albany office in Peels Place.

GBA media release – Albany

BoM – Weekly Tropical Climate Note

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Issued 14 July 2015

Unprecedented cyclone activity in central Pacific Ocean

The central Pacific Ocean has seen unprecedented tropical cyclone activity this July. Based on data compiled by the National Hurricane Centre, in the USA, records for earliest storm formation during the northern cyclone season have been broken. During the first half of this month, three central Pacific Ocean cyclones formed in the space of three days. This is the first time this many cyclones have formed in any calendar month since systematic cyclone tracking commenced in 1949. The first of these cyclones, Ela, formed in the central Pacific basin on July 9 beating the previous earliest formation date of July 17 (TC Waliin 2014). There has also been tropical cyclone activity in the eastern and western regions of the Pacific Ocean. Peak activity occurred on July 12 when there were six tropical cyclones across the Pacific Basin.

Typhoon Chan-hom (Falcon) made landfall on the east coast of mainland China on July 11, generating hurricane–force winds and high seas. In its wake, is typhoon Nangka. This typhoon has been moving in a westerly direction, but is expected to make a turn to the north and potentially impact southern Japan as a strong typhoon in the next few days. Other systems over the Pacific Ocean are not expected to have a significant impact on land areas in the short-term.

Madden–Julian Oscillation weakens

The Madden–Julian Oscillation (MJO), which was at near–record strength last week, weakened towards more moderate values during its eastwards progression over the western Pacific Ocean. As the MJO moved out of the western Pacific Ocean, convection and associated rainfall reduced significantly over the Maritime Continent and near the Date Line, and increased over the eastern Pacific Ocean.

Most international models accurately predicted the rapid weakening of the MJO signal over the last week. The general forecast trend is for the signal to reduce further and possibly become indiscernible in about a week. Even if the MJO signal reduces to that extent, it usually has no significant impact on rainfall over northern Australia when it approaches the central Pacific Ocean at this time of year. The Maritime Continent, South-East Asia and India often experience suppressed convection and rainfall in this weakened MJO scenario while the tropical northeastern Pacific Ocean often sees enhanced activity.

See the Bureau’s MJO Monitoring for current MJO information.

Tropical Pacific Ocean warms as El Niño strengthens

The Tropical Pacific Ocean has continued to warm in recent weeks, as El Niño steadily strengthens. Recent tropical cyclone activity and a near–record strength Madden–Julian Oscillation has likely contributed to the most recent warming.

All international climate models surveyed by the Bureau indicate El Niño is likely to persist at least through to the end of the year. The latest weekly NINO3.4 sea surface temperature anomaly is +1.5°C and the 30–day SOI value to 12 July is −16.2

See the Bureau of Meteorology’s ENSO Wrap-Up for official El Niño information.

Next update expected by 21 July 2015 | Product Code IDCKGEW000

El Nino in the Tropical Pacific (BoM)

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El Niño in the tropical PacificThe tropical Pacific is in the early stages of El Niño. Based upon model outlooks and current observations, the Bureau’s ENSO Tracker has been raised to El Niño status.

El Niño–Southern Oscillation (ENSO) indicators have shown a steady trend towards El Niño levels since the start of the year. Sea surface temperatures in the tropical Pacific Ocean have exceeded El Niño thresholds for the past month, supported by warmer-than-average waters below the surface. Trade winds have remained consistently weaker than average since the start of the year, cloudiness at the Date Line has increased and the Southern Oscillation Index (SOI) has remained negative for several months. These indicators suggest the tropical Pacific Ocean and atmosphere have started to couple and reinforce each other, indicating El Niño is likely to persist in the coming months.

International climate models surveyed by the Bureau indicate that tropical Pacific Ocean temperatures are likely to remain above El Niño thresholds through the coming southern winter and at least into spring.

El Niño is often associated with below-average winter and spring rainfall over eastern Australia, and above-average daytime temperatures over the southern half of the country. However, the current May to July outlook suggests much of Australia is likely to be wetter than average. This is because a warmer-than-average Indian Ocean is dominating this outlook. El Niño is expected to become the dominant influence on Australian climate during the second half of the year.

ENSO TrackerOur ENSO Tracker provides
up-to-date information on the likelihood
of an El Niño or La Niña developing.

ENSO Tracker (El Nino)

The status is EL NIÑO.

Information courtesy of the Australian Bureau of Meteorology.

Update released – 12 May 2015.

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