![The intensity of buyer demand for grain has continued in recent weeks seeing a general improvement in prices and growers achieving their price targets regularly above published bids. The intensity of buyer demand for grain has continued in recent weeks seeing a general improvement in prices and growers achieving their price targets regularly above published bids.](/images/transform/v1/crop/frm/227873742/2371cca2-8d4f-4042-a2c7-b000b9e326d1.jpg/r4_0_1918_1017_w1200_h678_fmax.jpg)
Grain markets have been adding risk premium into prices as crop conditions have deteriorated in large grain exporting countries during the northern hemisphere spring period.
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Chicago Board of Trade (CBoT) July 2024 wheat futures reached eight-month highs mid last week, before pulling back and ending the week off the highs.
The results of the annual Kansas Wheat Quality Council's hard winter wheat tour were released at the end of last week which corresponded with the drop in US wheat futures.
The tour estimated an average Kansas wheat yield of 46.5 bushels per acre compared to the tour's five-year average yield of 42.4 bushels per acre, indicating Kansas crops are in reasonable shape.
The outcome of the tour projects Kansas wheat production at 290 million bushels, in comparison the United States Department of Agriculture (USDA) is forecasting production at 268 million bushels, a difference of 0.6m tonnes.
Hence the outcome wasn't overly "needle shifting", however may have provided market participants some comfort knowing crops in the major US wheat producing State look good and are near harvest.
The Kansas City Board of Trade (KCBT) July 2024 hard winter wheat contract fell 27 US cents per bushel after the tour yield estimate, slightly more than the CBoT soft wheat contract.
It should be noted the Kansas crop tour estimates can be quite different to the USDA's final numbers.
International traded wheat price indicators showed little reaction to the US market movements last week, as reported by international independent analyst Argus.
Standard milling wheat into South East Asia quoted by Argus was up AUD $10/t for the week.
Spot prices for milling wheat out of the Black Sea were also reported higher through last week.
![Risk is being built back into international prices as the size of crops around the world remain largely uncertain for 2024 and crop conditions have deteriorated in some major world producers. Risk is being built back into international prices as the size of crops around the world remain largely uncertain for 2024 and crop conditions have deteriorated in some major world producers.](/images/transform/v1/crop/frm/227873742/dc5e20a0-0795-4ef4-a9be-3121fa73f064.jpg/r0_4_1923_1102_w1200_h678_fmax.jpg)
In Australia, published bids for grain generally pushed higher at the beginning of the week before retracting towards the backend reflecting the moves in US futures and a stronger Australian dollar.
Offer prices from seller's were generally not following published bids lower and as a result "actual traded" prices of grain were above published bids in many cases as buyers jumped up to buy grain.
Fifty different buyer businesses purchased grain offered by growers on Clear Grain Exchange (CGX) last week with another 70 buyers searching the exchange for grain.
Fifty five different grades traded of wheat, barley, canola, faba beans, lentils, lupins, oats, and sorghum in 16 port zones across Queensland, New South Wales, Victoria, South Australia and WA on CGX.
This indicates the "breadth of demand" for Australian grain right now.
Buyers are searching in all locations for all types of grain, pulses and oilseeds.
For more information or to see what values are trading contact Clear Grain Exchange on 1800 000 410 or
support@cgx.com.au