Sep 20, 2021

Australian Crop Update

FOB replacement values using Australian track bid/offer – not an indication.

Source: AgScientia https://www.agscientia.com.au/

We are nearing the pointy end of the Australian season and most cropping regions are looking for rain to maximise yields or hang on to the current potential. The latest NDVI data saw crop conditions improve in NSW, South West QLD and SA. Conditions have remained steady in VIC, however in WA, conditions continue to slide as crops look for rain.

Dry weather in the west, along with talk of frost damage, strength in Black Sea cash markets and the weaker A$ are all offering support for local prices last week in both old and new crop. Looking at the weather models, there seems to be some rain for parts of WA and across SA, VIC and NSW at the end of September/early October. This will be watched closely.

Dry weather concerns and talk of frost damage in WA has most likely limited any further yield growth in WA but it is still a large, albeit likely to be low protein, crop. Our analyst cut WA wheat production estimates by about 5% due to the absence of any significant rain in August and likely September. Production losses in WA will be offset by higher output in NSW, at least for now. NSW veg index levels have trailed last year’s levels through the season after a slow start, but they continue to climb and the gap is narrowing. The favourable conditions and early September justify a 10.75 Mt NSW crop based on an average yield of 2.85 t/ha. This adds another 1 Mt onto the NSW crop from our previous forecast. SA and VIC production will decline without some late September rain.

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Basis Commodities expands service offering to soybeans.

18 Apr, 2024

In late 2023, Basis Commodities successfully executed its first shipment of premium non genetically modified soybeans from Romania to Egypt, via two small vessels. Basis has many years of experience managing trade flows and relationships within the Middle East and we were pleased when the opportunity to add a new product – Soybeans – arose out of discussions with our suppliers in Romania and buyers in Egypt. To ensure the safe arrival of the produce, the company worked with several parties to facilitate the execution of this new flow for the company including managing due diligence, testing, insurance and contract execution. Soybeans are a primary source of protein and edible oil, making them essential for human nutrition. The largest producers of soybeans in the world are the United States, Brazil, and Argentina. These countries account for most of the global soybean production. Ukraine is the leading exporter of soybeans in Europe. However, Romania is seeing growth in this market after a long hiatus. This growth can be attributed to various factors including increased demand for soybeans globally, improvements in agricultural technology, and favourable climatic conditions for soybean cultivation in Romania. Egypt is among the top importers of soybeans in the world. The country imports large quantities of soybean, primarily for the production of soybean meal, a key ingredient in animal feed formulations. The country's growing population and expanding livestock sector contribute to the increasing demand for soybeans as a source of protein-rich feed. Basis Commodities General Manager in Dubai, Nader Ahmed said assisting companies making connections in the movement of soft commodities is a speciality of the company “we are committed to fostering international trade partnerships and promoting the exchange of quality agricultural products in the Middle East” and “We’re proud to have played a role in bringing premium soybeans into Egypts market”. For more information on how Basis Commodities and assist your business, reach out to the team on the details below