CHS Broadbent News

CHS Broadbent to build bulk grain export terminal in Geelong, Australia

Mon, 27 Nov 2023 00:53:58 GMT

Grain growers in Southern NSW and Victoria will see more competition entering the export market next year with CHS Broadbent announcing the development of a new 80,000 m etric tonne bulk grain export terminal in Geelong, Victoria.

The grain export terminal will be owned and operated by CHS Broadbent with construction on the five hectare site expected to begin in 2024.

The facility will boast fast road and rail unloading capabilities and market leading grain handling technology to ensure quick turnaround times and the efficient loading of bulk export vessels.

The addition of Australia’s newest export terminal will add more competition and provide more opportunities for growers to connect directly to the export market.

CHS Broadbent Managing Director Steve Broadbent said it is an exciting time for the company and growers in Victoria and Southern New South Wales.

“Quality service to farmers is at the core of everything we do at CHS Broadbent and the addition of an export terminal to our supply chain service will see further value delivered to growers, right back to the farm gate.

“The terminal will be designed with an annual export capacity of 1.5 million metric tonnes. In an average year we project we will export around 1 million metric tonnes which equates to approximately 13 turns per year.

“We’re excited to bring our fast turnaround times, amazing staff, local knowledge and global connections to Australia’s newest grain export terminal when we start exporting from the terminal,” Steve said.

The new development is a result of CHS Broadbent and Midway Limited entering a land sale agreement for five hectares of the Midway Limited site at North Shore, Geelong.

Brian Schouvieller, Chairman of the CHS Broadbent board and CHS senior vice president for trading and risk management said CHS Inc is excited to embark on this key investment in Australia’s newest grain terminal.

“The Geelong location extends our supply chains in the Asia-Pacific region and provides farmers with a unique opportunity to connect with our global network.”

ENDS

Media Contact

Steph Buller | 0447 486 934 | s.buller@chsbroadbent.com

About CHS Broadbent

CHS Broadbent owns and operates grain storage, container packing and grain freight operations through Queensland, New South Wales and Victoria. They connect Australian grain farmers to domestic and international customers via their own export assets and third party ports around the country.

CHS Broadbent is 50% owned by the Broadbent family. The now third generation family business was established in 1952 in Beaufort Victoria as a firewood, bagged grain and hay freight business using the first bulk trailers in the area.

The other 50% is owned by CHS Inc., a Fortune 100 global agribusiness owned by farmers, ranchers and cooperatives across the United States, is based at Inver Grove Heights, Minnesota, with more than 10,000 employees in 65 countries.

For further information visit www.chsbroadbent.com

About CHS Inc.

CHS is a diversified global agribusiness cooperative owned by farmers and local cooperatives across the United States. Our 10,000-plus dedicated employees around the globe have a singular purpose: Creating connections to empower agriculture. We help drive sustainable growth for our owners and customers with a strong, efficient supply chain, access to global markets, and exceptional products and services.

For further information, visit https://www.chsinc.com/

About Midway Limited

Midway Limited is a leading Australian plantation and carbon management and woodfibre export company with headquarters in Geelong. Midway was founded in 1980 and is now primarily involved in plantation management and the production, processing and export of high-quality wood fibre to producers of pulp, paper and associated products in the Asian region. Midway owns 100% of Midway Tasmania, based at Bell Bay and Plantation Management Partners (PMP), based on Melville Island. Midway also has a majority shareholdings in South West Fibre Pty Ltd (SWF) based in the Green Triangle and Queensland Commodity Exports Pty Ltd (QCE) based in Brisbane. Midway is also building a carbon management portfolio based on forestry plantations.

For further information, visit www.midwaylimited.com.au .

Canola Market Update 21st October 2022

Fri, 21 Oct 2022 02:39:40 GMT

With Jess Kirkpatrick

Audio Script:

Hi, I’m Jess Kirkpatrick from CHS Broadbent, and today I’m going to give you some information around what’s been happening in the canola market in recent weeks.

I’m sure you’ve seen that this canola market has really popped in the last fortnight with some continued volatility.

We’ve seen site prices near $800 site at Lakaput and Lake Bolac for example.

So, what’s been happening?

In Canada, we’re continuing to see harvest progress well, however slightly behind where they typically would be.

Some of the yield reports out of various areas a slightly below what was expected, however production is still nearing 19 or 20 million tonnes.

They’re seeing good crush margins in Canada itself, and continued exports out of Canada into China.

But what about on a more local level?

The Australian crop a few months ago was forecasted by the Australian Oilseeds Federation to be 5.5 million tonnes, and recently ABARES just increased this to 6.6 million with some of the trade suggesting it may be nearer to 7 million.

3.8 million tonnes of this crop is located in WA and what’s unique at the moment is the WA canola value is depressed compared to east coast values.

As we continue to see demand out of Europe, it’s important to remember this is slightly slower compared to this time last year, and that’s fed off near by supplies of oilseeds such as sunflowers out of Ukraine.

The other big question this year will be, when does the local grower decide to sell?

We’re seeing growers fairly well undersold compared to this time last year.

So, will the grower sell as we near some of these high 700 numbers? Or will they continue to hold out until harvest with some uncertainty around the spring here and harvest conditions with La Nina?

There is a lot to play out over the coming weeks as we head into windrowing and harvest for our canola crop. So please keep in touch with your local CHS Broadbent merchant and we can give you some up to date information as to what’s happening in the market and the forward contracting opportunities for you.

We hope everything is going well at your place, and here are the prices for today.

Canola Market Update 7th September 2022

Wed, 07 Sep 2022 09:25:32 GMT

With Jess Kirkpatrick

Audio Script:

Hi, I am Jess Kirkpatrick from CHS Broadbent and today I am going to give you some information on ISCC and canola. You may be aware Europe is a major importer of Aussie canola, in recent years they have imported up to 80% of Australia’s canola exports. They like to use our canola seed as part of their biodiesel program and because of this, they have strong requirements around sustainability. For us to be able to continue to access this market, we need to be ISCC accredited.

So what does that mean for the Aussie farmer? Well in recent years, being able to access this market has given a $10/MT premium over non- ISCC accredited canola.

To give you some facts around how much they imported, last year in the first nine months of the export marketing year, we saw Europe import 3.6 million tonnes of Aussie canola going to countries such as Belgium and Germany.

So as we head into Spring and crops start flowering it is a really great time to get on top of admin required for the ISCC program. You have to jump onto the myNGR website and complete your declaration there. By having this declaration completed before harvest, it means you are going to be able to easily transact with contract and cash prices for ISCC canola.

If you have any questions regarding ISCC canola and how it works, or how to complete your declaration please give myself or the other team members at CHS Broadbent a call.

It’s also a really great time as we head into Spring to touch base to see how the canola market has be tracking throughout the year and how you can interact with forward pricing.

Today’s prices are listed here.

AS the district starts to turn yellow, we are looking forward to seeing you at your place and talking to you as we head into harvest.

Canola Market Update 19th August 2022

Fri, 19 Aug 2022 04:56:50 GMT

With Jess Kirkpatrick

Audio Script:

Hi, I’m Jess Kirkpatrick. Grain Merchant with CHS Broadbent.

And here is your global canola supply wrap.

Last week we saw the USDA report increase their canola production by 2.25 million tonnes.

This is a massive 82.5 million tonnes of global forecasted production this year.

This is going to be an increase of 10.2 million tonnes on last year’s production.

If we look at a more local level, the Australian Oilseeds Federation has released a forecast of 5.5 million tonnes this year.

This aligns with the announcement from the Bureau of Meteorology that we will be seeing La Niña for the third year in a row.

So, there is the potential we will see good seasonal conditions and therefore a potential increase on this forecast.

Other countries globally we’re seeing Russia produce around 4 million tonne, Canada 20 million tonnes and Europe 18 million tonnes.

Although there is good supply globally, we’re still seeing good demand for Aussie canola and expecting a good export program next year.

Now that we’re heading into spring, it’s a good time for you to check your forward contracting position.

And also, test your appetite for starting, or continuing your forward sales program.

Today’s prices are listed here.

Our team at CHS Broadbent is more than happy to discuss markets and contracting opportunities with our growers.

So, please give us a call to discuss how we can work with you.

I hope the crop is looking great at your place.

Canola Market Update September 2021

Wed, 13 Oct 2021 07:01:54 GMT

With Sam Toll

Over the past fortnight, we saw the canola market really take off again here in Australia, rallying close to $60/MT on the track market and getting awfully close to that $1000/MT. In our most recent canola market update, Sam Toll takes us through what’s happening in the canola market around the world and what is driving these high prices.

Watch below.

Audio Transcript:

Hello and welcome to the CHS Broadbent monthly canola market recap. My name is Sam Toll, today I'll just quickly run through a few things we're seeing in the canola markets over the past 3 to 4 weeks.

Looking at the macro level global markets. There is a WASDE crop report out tonight from the US. That report will cover off a lot of issues around export data production and quality issues that we're seeing in the major oil seed producers globally. So that's certainly one to watch.

Quickly, on soybeans in North America. Soybean harvest is roughly about 50 per cent through the harvest. Corn is probably about the same, around halfway through. There is no great bad news coming out of the US. I think the crops and the quality coming through are generally in line with expectations. So there's no new news coming out of that area in terms of harvest issues at the moment. So, we haven't seen anything that's really set the market on fire at the moment in terms of quality or production.

In Europe, I guess the big news or thing we've been watching pretty closely is oil values over there. Oil, canola oil hit another record price, high price this week at around 1800 dollars US at tonne or a bit over. To put that in perspective, that is nearly double what the price of canola oil was this time last year. So it's been a huge step up in oil prices and obviously crushed margins off the back of that, a very, very healthy.

In Canada, the canola harvest is probably 90 percent complete. I think we've spoken previously, I think everyone is aware of the issues that Canadians have had this year, production issues over there. I think the one thing that caught my eye was that canola export data coming out of Canada for August was around 240,000 tonnes. That is the lowest export number out of Canada since 2005. So that's roughly 70 percent lower than what they would normally export in that month on average. And obviously the market's going to be looking for that seed elsewhere. Hence why we're seeing really strong demand for old crop and obviously new crop canola seed out of Australia.

I guess the other key point at the moment is the palm oil market which we don't really look at that closely on a day to day basis. Palm oil prices have skyrocketed over the last three to four weeks. And I think in Malaysia and Indonesia, the two biggest export of the palm oil globally had big production issues as well. So that's, I guess, adding further fuel to the fire in terms of this oil seed market being extremely volatile and then very strong prices.

On soybeans, I think there's some data out from July to September on global exports. Exports were actually down 24 per cent for that quarter, which is pretty significant. And soybean exports are primarily driven by the Chinese. I think the Chinese demand is down for a number of reasons. I think they built up quite big inventory levels in the months preceding that quarter. So they're quite big stockpiles of beans. They've obviously had issues with COVID like everyone else. Crush margins at the moment aren't that great. And they've obviously had big issues in the pork industry as well. So that's probably been the main contributing factor to those export numbers being well down from July, September. So that's one to watch in terms of the bean markets and also their correlation to the canola.

Locally here in Australia, price wise, over the last fortnight, you know, we're really seeing the market take off again. I think it's rallied to close to 60 dollars a tonne in the big track market. We haven't quite hit the thousand dollars a tonne track yet, but we got awfully close. Although in the last two sessions in Europe in particular, the market's probably given

most of that back. And I think maybe that's a market just taking stock of this crop report that's out tonight before it makes its next move. So there's been a lot of volatility still. Where to from here is anyone's guess. We'll just have to wait and see as the weeks roll on.

At a national level here in Australia. We're absolutely on track for a record canola crop this year, which is great news, I think in New South Wales and Western Australia, growers have actually been engaged in selling into these markets in this market with forward contracts.

In Victoria, probably less so. There hasn't been as much grower selling. We've still got at least three to four weeks to get through the frost window. And I think we anticipated that once growers get through that and a bit more production, certainly that they will probably engage and start selling a bit of canola.

So that's just a quick recap from the canola markets. We'll have another update for you in November. Let’s hope that the cool and wettish spring continues and we'll talk again soon.

Thanks for your time.

Cheers.

Durum Market Update September 2021

Mon, 11 Oct 2021 03:07:02 GMT

Pasta Parcel Episode 4, September 2021

We’re getting closer to Durum Harvest kicking off in NSW, so for this month’s Pasta Parcel, Jaimee Maunder takes us through estimated global production numbers, how global demand is playing out and local prices.

Watch the short video below. ��

Audio script:

Welcome to the fourth episode of the Pasta Parcel, your monthly dose of global and domestic Durum market information. I'm Jaimee Maunder, and today we're coming to you from Moree.

We're at the start of October, which means we're knocking on harvest's door with the first crops expected to kick off in the next month. Rain this week will see crops finished filling and flowering. Durum harvest in the states is wrapping up with the USDA estimating production just under a million tonnes. In the EU we are seeing French production being estimated down 40,000 tonnes and the Spain crop being estimated down 30,000.

World pasta demand is expected to start picking back up as we head back into the winter season in the northern hemisphere. Mill buyers continue to buy hand to mouth as they keep positions close, even with slow sales on the semolina front.

Global prices are beginning to come back after the price correction we saw in North America and Europe in early September. In mid-September, we saw Algeria come to the market for a November tender, where they bought about 300,000 tonne, most of it working out of Mexico and a small amount out of Canada. Prices to remain stable to firm on smaller global production and available exports.

Locally, Durum wheat prices are sitting at $560 into Moree.

Thanks for tuning into this month's Pasta Parcel episode. With just a few weeks until we hit the harvest rush, it's a great time to get your Durum marketing plans in order if you haven't already. To discuss options we have available this season, please don't hesitate to call me on 0438 578 216.

Keep an eye out for next month's update.

Canola Market Update August 2021

Thu, 02 Sep 2021 05:05:22 GMT

With Narelle Free

This month’s canola market update is coming to you from a cracking canola crop in #Victoria . Narelle Free takes us through the recent Stats Can report, updated canola production numbers and potential soybean crop numbers from Profarmer post their annual crop tour.

Watch below.

Audio Script:

Hi, Narelle Free, Grain Merchant from CHS Broadbent, taking you through the canola market for August.

The most recent Stats Can report came out two nights ago now (filmed 1st September 2021) and it has really highlighted the production issues that have impacted the Canadian Prairies this last year. It was slightly better than expected with the Canola production being pegged at 14.7 million metric tonnes when the market was expecting it to be more like a 14.1 million metric tonnes.

So, the oilseed market has been focused on the demand side of the equation with the US requiring on going demand to maintain the elevated price activity that we’ve seen in the US markets this past two months. China has been a consistent buyer of US origin beans in the past fortnight but hasn’t come in for a multimillion tonne purchase which the markets knows they are capable of.

In the US, Profarmer, the well-respected Industry analyst has just finished up their annual crop tour last week and they’ve come up with a soybean estimate of 4.43bln bushels, or a 120 million metric tonnes, which was slightly better than the recent USDA numbers. It’s given the market a bit of confidence that US soybean crop is on track for projected yields.

So, Australian conditions in key production states of New South Wales and WA continue on track for a big year, and is still likely quite possible for a record production season.

On the east coast, prices rallied another $30 Australia a tonne over the past two weeks with canola trading at $900 track for a day or two last week.

Where to from here is anyone’s guess but we are up in the stratosphere, so who knows when the pullback might happen. For example, prices for next season, so 22/23 are around $700 Geelong/Melbourne track, so that’s still very high historically but it also serves to remind us that, that $900 canola is an incredible number, we’ve just got to grow it now.

Durum Market Update August 2021

Tue, 24 Aug 2021 07:30:42 GMT

Pasta Parcel Episode 3, August 2021

For this month's Pasta Parcel, Sam Toll takes us through how the local Durum crop is looking in Northern NSW, the recent reduction in US and Canadian Durum production, quality concerns in France and how that's all playing out for local old and new crop Durum prices.

Check it out below. ��

Audio script:

Hello and welcome to the third episode of the Pasta Parcel, a quick recap of the global and domestic Durum markets. My name is Sam Toll, today I’m coming to you from our Moama office on the Victoria and NSW border. Unfortunately, no paddock news today given both regional Victoria and NSW are in lockdown.

Just quickly on crop conditions up in the north of NSW, things have dried out a little over the last 4 or 5 weeks from obviously what has been a very wet winter and crops have struggled with those conditions. Although, in saying that, in the last 24 hours the Central West and Northern NSW has seen, you know, another 25-30mm of rain event, so things are obviously going to be wet up there again at the moment.

The sowing window on Durum has now closed. Looking at our supply numbers, we do believe, and feedback from growers is that Durum planted hectares this year will be down quite considerably on last year, and that’s purely an agronomic and rotational issue for most growers. I think also, just on a general level on milling wheats and Durum wheat we do expect to see protein levels well down on last year given it was such a huge crop in NSW.

In the international side of things, particularly in North America, the drought conditions that everyone’s been reading about over the last two months there have continued right through to harvest. The USDA, I think they’re suggesting the Durum harvest is roughly 50-60% through. Quality actually and the yield has probably been a little bit better than what was expected albeit, you know, yields are going to be well down year on year given those drought conditions.

North up into Canada. The Durum areas have been really hard hit by the drought conditions, many industry analysts over there are suggesting production could be down as high as 30-40% year on year. I think last year the Canadians grew 6.5 million tonne Durum crop. This year the number is still unknown, but it could be as low as a 3.5-4 million tonne crop. So a significant reduction given the Canadians are the worlds biggest exporters of Durum globally.

In Europe, just quickly, they’re well through their harvest at the moment, particularly in France at the moment which is one of the big European producers. They have had wet conditions right through harvest which has impacted on quality. So at the moment, we’re seeing a bit of a double whammy of big production issues this year in North America and quality issues in Europe. Which is obviously leading to what we’re seeing in our domestic prices here at the moment.

On the flip side, on the demand side of things, we are reading that pasta manufacturers are dealing with large inventories at the moment with the COVID situation. So we’re seeing both those factors at play now, although in saying that, we do believe prices will be well supported well into next year, just with the current production situation.

Domestic Durum values here at the moment are pretty much moving in lock step with these global moves. I think when Jaimee Maunder did our first recap back in mid June, our prices since then have rallied pretty close to $100 per tonne, so it’s been a significant step up. Really over the last 8 weeks all due to production issues coming out of the northern hemisphere.

Just quickly on prices today, (Ref old crop prices) our Moree site in NSW, DR1 I think will be around a $420 mark and delivered Newcastle prices for DR1 for a January-March delivery period are around that $475 price. For new crop prices today, Moree DR1 is $453 and DR1 delivered Newcastle Jan-Mar is $494.

And just as a foot note, you know DR2 and DR3 spreads are very tight this year from what we normally see and again, that’s just purely reflecting the lack of actual global production of Durum.

That’s about all we have for today. We’ll be back in mid September for another Durum wrap. Thanks for your time and have a good day.

Canola Market Update July 2021

Mon, 02 Aug 2021 22:33:04 GMT

With Tim Hayes

Taking us through global canola markets this month is Tim Hayes! Tim takes a deeper look at drought conditions in North America, the effect it’s having on yield and the canola price spike over the past fortnight.

Watch below.

Audio Script:

Hi, I’m Tim Hayes, Grain Merchant at CHS Broadbent, to take you through what’s happened in canola markets for the month of July.

The rapidly deteriorating fate of the Canadian canola crop, has pushed global values sharply higher over the last fortnight. The trade and global consumers are slowly coming to grips with the implications of a falling production outlook for the world’s largest producer and exporter of the oilseed.

Canadian farmers may have increased the area planted to canola from 8.3 million hectares in 2020 to around 9 million hectares in 2021, but the yield projection is falling rapidly. Subsoil moisture was low from the outset across much of the Prairies after below-average rainfall over the past 12 months. The crop was sown into a good seedbed in most instances, but a dry spring and extreme temps are swiftly taking their toll on the crop.

In the latest World Agricultural Supply and Demand Estimates report, the USDA pegged Canadian canola production at 20.2 million tonnes down just 300,000t from its June estimate. That is much higher than local trade estimates, most of which are under 19MT, with some are already as low as 16MT.

A key question for domestic canola values will revolve around the EU consumer reaction to lower Canadian production and exports, and has the wider market fully priced the current North American weather concerns.

Growing conditions in the two major producing states of Australia, Western Australia and New South Wales so far have been exceptional. These gains should make up for any losses in planted area in South Australia and Vic due to the dry start.

The southern Vic crop is starting to experience excessive moisture conditions and we may see some loss and reduced yield through these parts due to waterlogging.

The east coast grower is also excited about the potential return on investment outcome that a high price and above-average production scenario could have.

East coast grower new crop delivered port bids all finished the week above $800 per tonne (Filmed Friday 30th July) . Grower selling has been steady, but that will undoubtedly accelerate as production certainty builds heading into the spring.

Thanks for watching, please be sure to tune in again for the next update.

Durum Market Update July 2021

Mon, 19 Jul 2021 09:03:46 GMT

Pasta Parcel Episode 2, July 2021

For this month’s Pasta Parcel, we’re with Bobbi Ryan in Jondaryan Qld.

Bobbi takes a quick look into how the Aussie Durum season is panning out then takes a deeper dive into the international supply and demand profile.

Watch below ��

Audio script:

Welcome to this months pasta parcel. I’m Bobbi Ryan and today we’re filming from Jondaryan on the Darling Downs..

In Northern NSW & Liverpool Plains, Durum planting is about 80% complete. We have had around 500mm of consistent rain across major Durum growing areas this year, which has slowed progress, but planting should be complete over the next fortnight. For growers, there is plenty of positive sentiment and it looks like we could be in for another great Durum crop.

Internationally, US & Canadian crops are still under pressure from hot, dry drought conditions pushing across the Northern Plains & Canadian Prairies. With no reprieve in sight at this time, there is still concern for poor yield and quality.

This week the USDA estimated U.S. Durum production will be down 46% vs last year at just over 1MMT. And similarly, Canadian production is estimated to be down 20-25% vs last year’s crop.

In Italy, & to the north, harvest is progressing with overall average yields and quality being reported. At the end of June, European Commission production was estimated to be 7.8MMT, up from 7.2MMT last year. This is behind the 8.3MMT five-year average.

In terms of world pasta demand, things are a little quiet right now as pasta makers work through growing warehouse inventories.

Prices look to remain stable to firm though with potential supply issues on the horizon for North America.

New crop Durum prices for today (Thursday 15th July) delivered Moree is $354 and $416 delivered Newcastle.

Thanks for tuning in this month. If you'd like to chat more about Durum markets, please give me a call on 0437 183 247.

Until then, keep an eye out for the next month's update with Sam Toll.

Arrivederci!

Canola Market Update June 2021

Fri, 02 Jul 2021 02:44:53 GMT

With Alex Byrne

This month's canola update is with Alex Byrne, touching on the increased area of canola planted in Australia on the back of an autumn break and the current international market drivers affecting prices.

Watch below.

Audio Script:

Hi I'm Alex Byrne, here to give you a quick update on canola markets.

An early autumn break in NSW, WA and parts of Victoria have allowed increased area of canola to be grown this season.

The ABARE 21/22 forecasted area in Australia is up approximately 600,000 hectares. This is the largest crop of canola ever grown in Australia. ABARE is forecasting a production of 4.2 million tonnes which is extremely conservative given the seasonal forecast outlook.

Currently we are seeing extreme volatility in oilseeds markets, especially in canola. Trading ranges over the last 2 days for instance have been $40-50 per tonne, per day on the canola exchanges.

The major drivers of the market at the moment are the weather in Canada and the U.S.

There is currently an extreme heatwave in the major canola growing areas of Canada. Changes to temperature and rainfall forecasts will impact crop yields and therefore price.

Trend line yields in Canadian canola and US soybeans need to be maintained in order to satisfy demand. This is especially true after the USDA released lower than expected planted soybean area for America last night.

Thanks for watching, please be sure to tune in next month for the next update.

Durum Market Update June 2021

Mon, 21 Jun 2021 02:54:37 GMT

Pasta Parcel Episode 1, June 2021

The Pasta Parcel is back for 2021!

If you’d like to keep up to date with Durum markets locally and internationally, watch this space! We’ll be releasing one per month up until Harvest 2021.

Kicking us off for the season is Jaimee Maunder in Moree.

Audio script:

Welcome to the first Pasta Parcel of the season, our short monthly Durum market update. I’m Jaimee Maunder, and this month, we’re coming to you from Moree.

The Durum plant commenced late May with 70% of the Durum now in the ground.

The area has received above average rainfall making favourable sowing conditions with full profiles. The areas still left to plant will be waiting for the drier week to finalise planting. The long-range forecast is looking positive for another great Durum crop.

On international demand, the U.S./Canadian crop is being watched closely as exceptional drought conditions continue across much of the U.S. Northern Plains and the Canadian Prairies. The main U.S./Canadian Durum growing areas did receive widespread beneficial rains in the past two weeks, but drought conditions and impacts from the drought will continue, and likely through to harvest.

The Italian harvest is just beginning in Southern Italy with average yields and quality being reported with good weather expected for the remainder of the harvest.

World demand is going back to 2019 pre pandemic levels, after seeing record pasta demand during the pandemic. Italy and Turkey exported record amounts of pasta during 2020/21. U.S./Canada ending stocks are the smallest since 2014/15. Prices look to remain stable with limited potential for decrease while premium to milling wheat is expected to tighten. Upside export prices potential is capped with elevated ocean fright levels.

New crop Durum delivered Moree is $320/MT today (Friday 18th June) and Newcastle is $366/MT.

Thanks for watching the first episode of the Pasta Parcel for 2021. If you’d like to have a more detailed chat about the Durum markets, don’t hesitate to give me a call on 0438 578 216 .

And keep an eye out for next month’s update with Bobbi Ryan.

Thanks.

Canola Market Update May 2021

Mon, 31 May 2021 05:47:57 GMT

With Sam Toll

It’s our first canola market update for the season! We’re aiming to get these out to you at the start of every month, giving a short wrap of what’s going on in global oilseed markets and what that’s doing to local canola prices.

Watch the first one with Sam Toll below.

Audio Script:

We’re going to do a quick recap on the oilseed and canola markets for everyone today.

Just quickly, at a global level. Two of the key numbers that came out this week (filmed 28th May 2021) were global oilseed stocks at a 5 year low, which is pretty significant. And we’ve also seen a really big increase in oil consumption, particularly in the US and China, so those two factors alone are having a really big impact on global oilseed markets, be it beans or canola.

The key takeaway number I think on soybeans which is pretty important, is the stock to use ratio numbers. Back in 18/19, stock to use ratio closed at about 32.6%, which is a pretty comfortable number. This year, the forecast for the 20/21 season will be back at about 25.4%, so that’s quite a big step down from two years ago. And again, that stocks to use ratio number is why this market is behaving like it is at the moment.

Just quickly in North America, everyone would have probably seen they’ve had a pretty good rainfall event, which is what had been driving the market up until then. That rain has certainly taken the pressure valve off and we’ve seen these markets come right back up until last night (filmed 28th May 2021).

Locally here in Australia, WA is off to a really great start, they’ve had great summer rain and good follow up autumn rain. They’ve had a record plant of canola in the ground from all reports, so they’re off to a flyer over there.

In NSW, most regions of NSW have got good sub soil moisture, mice are a major problem. Hearing reports particularly in the southern half of the state of growers resowing crops that have been eaten by mice, which is obviously a concern.

And, in Victoria and South Australia, it’s obviously dry, although, south of the ranges in the south east of South Australia in those canola areas is actually off to a pretty good start. So, all in all, north of the ranges we need rain but obviously south things are actually ticking along okay.

That will be all for today, we’ll talk again soon.

Central Office for Sustainable Canola

Mon, 10 Aug 2020 03:23:31 GMT

We’re part of the Central Office for Sustainable Canola

Europe is the prime export destination for Australian canola for use in the biodiesel industry, at times buying up to 80% of Australia’s canola exports. As part of the European Union’s (EU) target to improve energy efficiency, from January 2018 canola accepted into the EU biodiesel industry has to meet a greenhouse gas emissions savings requirement of 50% to 60%, up from 35%. To ensure Australian canola meets EU sustainability requirements, bulk handlers, farmers and traders are required to be certified as meeting those requirements under a scheme called International Sustainability and Carbon Certification (ISCC).

To make compliance easier for farmers, the Australian Oilseed Federation established a Central Office made up of Australia’s major canola exporters to simplify and streamline the paperwork and audit requirements for farmers. CHS Broadbent joined the Central Office in 2019 to ensure farmers delivering their canola to our storage and handling facilities have multiple

markets to sell their canola seed into, including the EU biodiesel industry.

There are specific requirements farmers must meet to become certified as producing sustainable canola including:

Demonstrate you’ve sustainably produced a crop in line with the EU Biofuel Directive.
Show canola has not been grown on land converted from areas such as primary forest, wooded land, nature protected

areas, highly biodiverse grasslands, wetlands and peatland after 2008.

Demonstrate you utilise good agricultural practice.
Provide documentation including; spray diaries, agronomist recommendations, soil tests and paddock records as well as
show how your chemicals and fertilisers are stored, applied and disposed of.

For more information on compliance and how the certification and audit process work, download this Sustainable Canola Fact Sheet from the Australian Oilseeds Federation.

If you meet the requirements for sustainable canola and wish to become certified to access the EU biodiesel market this harvest, completing an ISCC declaration is easy. Visit ngr.com.au and logon to myNGR to complete the declaration online or call NGR on 1800 556 630.

If you have any questions on how the process works, don’t hesitate to reach out to the CHS Broadbent team .