Cotton Wheat And Corn Make Ground

Bankwest has been providing services to Rural and Agribusinesses for over 100 years. We've learned many things in that time, but above all what we've come to understand is that you need banking products that are customised to meet the unique challenges of your industry.You will find the latest rural and agribusiness insights in this story.Slowly but surely the picture for 2011 is starting to emerge. The USDA planting indications were released earlier this month, with cotton (11%), wheat (8.5%) and corn (4.5%) showing large estimated increases on 2010 numbers. Predictions of a 1% fall indicate a less positive outlook for oil seeds. Demand for cotton looks likely to remain strong. Despite the recent availability of the southern hemisphere crop, prices are continuing to sit around $600/bale.Last weeks USDA supply and demand estimates for 2011 revealed only minor changes to last months figures. The only exception was a predicted reduction in corn consumption through to the end of 2011 but with prices currently trending up, the markets think the USDA has got it wrong. Wheat prices have also been rising recently, (although not as fast as corn) and the corn wheat spread has been in decline, implying potential upside to wheat going forward.Work has begun on Bankwests 2011/12 grain estimates. Thus far indications are for continued growth in global demand (2,250Mt for cereals), albeit at a reduced pace as US ethanol demand tapers. Supply is harder to gauge; the IGC is predicting 2,255Mt, while our estimates are a little lower at 2,240Mt. With supply and demand roughly in balance the determinant as always will be Other Test Equipment Tools yields. Even if we see some production increases next year, the low level of stocks on hand suggest commodity prices are likely to stay up through the 2011 season.COMMODITIESWHEATThe planting intentions report triggered a rebound in wheat prices, which was also driven by weather concerns in the US winter crop regions and parts of Europe. Corn prices have been driving the price for wheat higher, Reading Glasses with the market apparently disregarding USDA predictions on stock rationing in 2011/12. There are concerns building about stock levels this year and next.BARLEYFollowing a recovery in February, barley prices have since softened and are currently sitting at $300/t for new season malt barley and $240/t for feed. In Victoria, where parts of the rail system are inoperative due to flooding, theres been strong demand for old season feed barley with prices of $245/t delivered to port being offered. Corn futures support feed barley prices.CANOLACanola cash prices have recently regained territory, climbing back up to $610/t with soybean stocks recorded down 2% year on year. Soybeans and, in northern regions, canola will be forced to compete for acreage with corn and wheat in North America, but its nonetheless anticipated that this years oilseed crop will be third largest on record. The last time oil was trading at its current price, oilseed prices began to be driven by oil, rather than food crops, so if oil prices continue to rise canola has potential to take off.LIVESTOCKSaleyard lamb prices set new records with trade lambs averaging 639c/kg in March. As farmers opt to hold stock or purchase more, rather than sell, the market is still heavily supported by restocker competition. The beef market, meanwhile, has followed the lamb market trend; low supply and strong competition has pushed the EYCI to 412c/kg.WOOLAfter trading comfortably within an upward trend since November, the EMI has just recorded its first lower week-on-week level in almost two months, easing to 1375c. Chinas strong raw wool Mouse Keyboard Accessories demand continues to largely support the market, with increases in supply not anticipated over the next year.