CNSW Market Update – 01/06/2018

Alistair Murphy, Agfarm Account Manager CNSW

We have received some isolated storm activity around Central NSW this week with most falls recorded in the 5-10mm mark. Unfortunately, it didn’t make it too far north with areas around Coonamble and Walgett missing out once again.

Local rainfall was by no means a get out of jail free card, with the majority of arable country in the district ideally requiring anywhere between two to four inches to get the profile back in check. But we will take what we can get.

Markets have softened a little this week with international values falling away slightly, and more promising falls have been recorded in southern parts of the East Coast cropping belt.

The Darling Downs feed market has eased off the most this week, as consumers have been able to purchase additional coverage from traders executing barley and wheat with shipping cargoes from South Australia. This will cap upside in the northern markets in the short term until some of this coverage is consumed.

Liverpool Plains and Newcastle markets haven’t seen as much downside in comparison to their northern competitors, as values aren’t high enough in these areas to get a piece of South Australian sea freight business just yet, and as a result, are still finding it very hard to pick up additional coverage in the current environment.

It will be interesting to see how dry sown crops will react to the recent, albeit small, amount of rain. As it’s been so dry, the majority of dry sown crops haven’t germinated, but the little rainfall being received in the last change may cause some patchy germination without sufficient moisture underneath it.

It is now safe to say the canola sowing window for Central NSW is well and truly passed, but at current values for cereals, growers’ won’t be too unhappy with the option of switching to shorter variety wheats and barleys should a June break present itself.

 
 

Prices as at 31st May 2018

 

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