Tuesday, July 26, 2016

Australia's Biggest Grain Exporter Plans 'Emergency' Storage For Bumper Harvest

Today it seems to be wheat's turn to get sold off.
These figures are approaching all-in cost of production meaning they aren't the floor that cash-cost provides, the current situation can go on for a while if yields stay up or farmers don't do maintenance or scrimp on other variable costs.

Last Chg
Corn 339-4-1-6
Soybeans 975-6+9-4
Wheat 415-2-13-6

From Agrimoney

CBH Group, Australia's biggest grain exporter, revealed it was building "emergency" storage capacity to deal with a 2016 harvest which could prove the strongest ever, helped by a timely moisture for spring sowings.
The co-operative - which handles the vast majority of the grains harvest in Western Australia, Australia's top wheat growing state – said it was to construct 400,000 tonnes in short-term storage capacity, on top of site enhancements being enacted during a scheduled Aus$750m maintenance and upgrade programmes.
The decision comes amid expectations of a "bumper year" for the state's gain growers, "with the current crop estimates sitting at 14m-16m tonnes", potentially eclipsing the current all-time high of 15.9m tonnes set three years ago.
Abares, the official Australian commodities bureau, has forecast the state achieving a harvest of some 15.5m tonnes this year, a rise of more than 800,000 tonnes year on year, including 513,000 tonnes of lupins, besides major crops such as barley, canola and wheat.
'High yields'
The upbeat prospects reflect unusually strong rainfall in Western Australia, which has a history of patchy moisture, getting crops off to strong start....