Local grain markets remain soft with buyers now comfortably covered against nearby requirements.
Southern Queensland wheat and barley bids drop a further $20 a tonne to $410 and $420 respectively, delivered into the Downs markets. Sorghum bids were down $10 to $350 delivered Downs markets, reflecting the recent softening in global feed grain values.
With most of the old crop marketing now complete, farmers are looking ahead to the coming harvest.
Recent sharp declines in United States grain futures have many observers scratching their heads, wondering what to make of it.
US wheat futures have plunged 30 per cent in recent weeks from the May highs to last week's lows. It may turn out that both the highs and the lows were overdone.
At the highs, US wheat was, by far, the most expensive origin in the world. Demand had almost completely disappeared at the highs. However, values have since fallen by more than US$150/t with the washout in futures markets and demand may be returning.
Futures kicked late last week on unconfirmed reports that Chinese buyers were active last week.
Such movements are only possible when there is plenty of fear and uncertainty. Both have been abundant in spades.
Global wheat supplies remain uncomfortably tight because of Russia's war on Ukraine. Importers are being forced to seek supplies from alternative countries, which is pushing more demand to Europe and possibly the US. Europe has reported robust export demand in recent weeks.
Wheat exports from Australia in May were 2.4 million tonnes, down from close to 2.6mt in April.
China has been easily Australia's biggest wheat export destination in the 2021-22 season. Australia shipped a further 405,000 tonnes in May. This lifts the total October to May shipments to around 4.2mt with a further four months remaining in the marketing year.
China emerged as a big buyer of Australian wheat at harvest time as it became apparent much of the crop was either impacted by rain during harvest or low protein. It is expected that a further 1.3mt of wheat will be shipped to China in the coming months lifting final 2021-22 exports to around 5.5mt.
Queensland wheat exports slipped to 124,000 tonnes in May from the 255,000t in April as sorghum exports climbed.
Sign up for our newsletter to stay up to date.