SA Market Update – 05/01/2018

Giles Ditchfield, Agfarm Account Manager SA

Harvest is drawing to a completion throughout much of SA after a nice run of weather since Christmas. The harvest completion for the state is sitting around 94%, with the Lower SE and the lower YP still finishing off. These areas should be finished by the middle of next week. Most growers are reporting that they have finished harvest and are straight into spraying. Unfortunately for all we are going to have some very warm days where headers will have to stop and there will be no spraying. Some will say this is perfect timing as it will enable growers to take a much needed break and get some rest.

The trade have been very quiet with the Christmas and New year period. They have only been purchasing tonnes that they wish to own, if they are not interested in a parcel they have been quick to pass up on these. In saying this, since the New year we have already seen more buyers back into the market. As we work out way into the middle half of January we should see increased interest from buyers as they look to fill their positions both domestically and internationally. The shipping stem for SA continues to show a large number of tonnes being exported in the New Year. We have seen interest from the trade on the track in F1 barley at a $226/mt, AUH2 wheat at $245/mt and H1 & H2 wheat at $280/mt and $260/mt respectively. The soft run of canola continues at $480/mt which is up nearly $10 on last weeks values. Delivered markets in particular Semaphore are still providing a strong selling market for growers who have on farm storage and are looking at delivered markets. Growers still have the view that this market is bullish, and as a result they are holding onto their grain unless they are a forced seller for cashflow.

 

Prices as at Friday 5th January 2018