Central NSW Market Wrap – 17/11/2017
Alistair Murphy, Agfarm Account Manager CNSW
We saw an impressive run at harvest progression this week, as up until recently we’ve enjoyed a relatively dry run. The rain toward the end of the week has pulled things up for now, and the total fall will determine how long the headers are parked up for. The trend of high protein wheat being harvested has continued and as a result we have seen high protein spreads come under some pressure recently. APH1 and APH2 Newcastle track values moved lower this week, dropping more than $10/MT, while H2, APW and ASW1 remained relatively firm. The main driver behind the weakening higher protein spreads is the consistency of high protein continuing into Port Kembla where yields are slightly better and tonnes are cheaper to purchase. H2 and lower grades haven’t seen the same level of sell pressure given APH is above the $300/MT mark.
Chick pea prices saw a significant drop this week, in excess of $50/MT. The subcontinent pulse crop is the main driver behind this, as it’s expected to be much better than the last two years, and as a result, government import quotas and regulations are being adjusted. That being said, values still remain quite strong in comparison to longer term historical averages and as such, it’s still expect a decent amount of selling will occur once the later harvest makes progress. The majority of chick pea crops in central NSW are still a week to 10 days away from harvest, which is later than expected due to the cooler spring causing a patchy finish to pulse crops around the region.
There is more rain predicted for the weekend after next, which at this stage looks like it could bring some decent falls. Such a rain event does bode well for the improving the sorghum outlook for the year, although new crop markets have softened with the improving outlook and we are now starting to hear more discussion around opportunistic cotton with sorghum budgeting margins starting to dissipate.
*Prices as at Thursday 16th November