Jun 26, 2022

Basis Commodities – Australian Crop Update – Week 25 2022

Market Update

Domestic markets were mixed across commodities and port zones in the past week. Old crop east coast wheat was firmer as traders stepped up efforts to encourage farmer selling. South Australia and Western Australia old crop wheat bids were softer with exporters more comfortable with the old crop positions. East coast feed grain markets were softer across the board. Exporters are still showing strong demand for milling wheat, but the demand for feed grain has mostly disappeared. Aussie feed grain demand appears to be slowing with South American corn undermining Aussie barley and SFW as the cheapest feed grain in the world.

Drier weather in the east of Australia is allowing farmers to finally catch up with planting. Some of the wettest areas in paddocks may go unplanted, but most of the crop will be seeded. Dry weather forecasts for the next couple of weeks should allow farmers to get most of the intended crop in the ground.

Unlike the U.S. and Europe, Australia is likely to see a wetter than normal winter crop growing season. BOM said large parts of the eastern two-thirds of mainland Australia could see around two to four times than normal rainfall for July to September (in the top 20% wettest of all past years) despite saying La Niña is officially over – although it may be back in Spring.

Ocean Freight

The freight market remains difficult to read. The market feels firmer but activity levels remain muted. We seem to be stuck in a malaise where both owners and charterers are reluctant to do anything other than what is enforced by contractual or opening dates and therefore kick the can down the road in the hope that a clearer picture emerges. Extreme bunker prices are not helping – they remain stubbornly over $1000/MT in Asia.

The post Basis Commodities – Australian Crop Update – Week 25 2022 appeared first on Basis Commodities.

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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