Jan 20, 2023

Basis Commodities – Australian Crop Update – Week 3, 2023

2022/2023 Season (New Crop) – USD FOB

NEW CROP PRICES ARE BASED ON TRACK BID/OFFER SPREAD PLUS ACCUMULATION & FOBBING COSTS AND ARE NOT FOB PRICE INDICATIONS.

The Australian cash markets saw milling wheat grades moving lower while feed grains moved higher. Western Australia (WA) was the exception where the bids were little changed for the week. Stronger feed grain values are a combination of the New South Wales (NSW) crop situation and slow farmer selling. The decline in the NSW crop vs last year, combined with the quality profile of the harvest has significantly tightened the east coast feed grain balance sheet compared to last year. The other notable change is the quality profile of the crop with more barley making malting quality in NSW this year.

8 day forecast to 26th January – http://www.bom.gov.au/

In WA, CBH said harvest deliveries topped last year’s record of 21.3MMT late last week. We have raised our WA wheat forecast by 0.8MMT to 13.8MMT.

In South Australia (SA), Viterra’s total grain receivals for the 2022/23 season are already a shade over 8MMT. This is more than a third more than last year’s final grain deliveries into the Viterra network, with several more weeks of harvest remaining in some areas. We have lifted the SA wheat crop forecast to 7.1MMT from 6.8MMT previously and edged Victoria higher on the back of the SA performance to 5.5MMT.

The net adjustments raise the Australian 2022/23 wheat crop by 1.2MMT (3%) to 37.7MMT.

We have included an update of the state wheat supply and demand below with the larger wheat crop. Note, our wheat exports are smaller than USDA at 25.9MMT because of the state configuration of the crop and limitations in export capacity at the state level.

In terms of crop profile we have updated our numbers as follows :-

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

Ocean Freight
We could easily copy and paste last week’s report again with sentiment dominated by a feeling nothing will happen until after the Chinese New Year.

The most interesting point over the last week has been bunkers rising about $50pmt across the board – now back over $600pmt for Singapore delivery.

The post Basis Commodities – Australian Crop Update – Week 3, 2023 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