Thanks John. 35mm overnight. Perfect for germinating sown canola and now onto our cereals. Holding fire on marketing much grain. 5% sold on wheat for this year. Will take that up to 25% on this next upleg in prices. Seems the wheat price has now become a proxy for what is happening in the Ukraine politically. In times gone by the PMs would have stepped in for this role?
Basis is still unseasonally strong and I'd be betting it will further strengthen as the markets underestimate the impact of both drought and instability on grain flows out of Eastern Europe. That will direct north African demand, particularly Egyptian to Western Australia. :)
The WA grains sector is hot on the map for international investors atm. No safer place in the world politically with reliable exportable surplus year in year out. A low population base also means droughts never inflict export restrictions. The pipeline is always open. How do we know this? Basis. Honest, pure and unadulterated market intell.
