Current Market News - 22th February 2012

SQP NEWS

• Please note SQP has now closed both the stable and balanced pooling options. The dynamic option will remain open until a date yet to be determined. With the current volatility in cash pricing, SQP pools represent an excellent marketing alternative. SQP pools are managed by an experienced team of grain traders and market analysts and offer competitive pool returns, personal pricing strategies and flexible payment options. For further information please call your local office or visit our website www.sqpgrain.com.au.

• For any 11/12 season fixed price contracts, please contact your nearest office or any SQP Grain Merchant – contact details for each office are listed below.  A relevant SMS may be distributed on specific grades and locations later today.

INTERNATIONAL

Profit taking, worries about a potentially bigger US corn crop and general crop sized weighed on the market again today. Good snowfall is expected in the northern US Plains spring wheat region will boost soil moisture reserves ahead of spring planting, according to Global Weather Monitoring. The Indian government plans to buy 31.9 million mt of wheat from farmers on 2012 – 12.7% more than in 2011 due to the expected record harvest. The trade expect Canadian wheat acres to rise more than 10% to 23.5 million acres next year, according to a Reuters survey. Argentina rains were good with 100% coverage over cropping area. Brazilian port authorities are planning a new 18 million mt/year grain port near Belem, Para in Brazil.  The facility would be bigger than both Santos and Paranagua

 DOMESTIC

Markets where softer yesterday, with demand from the bid side slacking a bit across most markets. This was inturn reflected in grower bids across most trading houses, with the exception of Canola which found some good support. Consumers are still sussing out cover into the back end of the year, however many are just kicking the tyres at this stage. Its the same old story for delivered port bids, which continue to be underpinned by huge export demands in the state. Offshore markets retreated overnight, whilst our currency gave up a bit of ground. We can expect to see pricing relatively unchaged from yesterday with the exception of wheat which may be down a buck or two.

MARKET SETTLEMENTS & TODAY’S PRICING INDICATIONS

The above pricing indications are intended as a guide only. For firm pricing on all grades/commodities please contact your local office.