SA Market Update 09/08/2018

Kate Phillips, Agfarm Account Manager SA

The rain managed to hang around this week, with growers in a number of areas grabbing their gumboots and umbrellas while other areas received enough to wet the ground. All areas are looking for good follow up rains to continue.

The last few cold fronts brought falls of 10-40mm for a number of areas. Some areas of the Lower Mid North and Murrayland experienced hail earlier in the week and there were reports of light damage. Every rainfall event is helping increase the sub soil moisture profile and shifting outlooks in both yields and positivity.

BOM is giving some hope the rain could continue to fall over SA for the next week, fingers crossed this eventuates.

 
 
 
 
 
As positivity in the season swings a little more to the upside we have seen growers reconnecting with the market as appetite for risk becomes more palatable. The week has seen good selling occurring for 2018/19 APW1 MG at $380-385/MT Port Adelaide up $20/MT week on week. As a comparison, at this time last year buyers were able to forward contract APW1 MG at around the $290/MT mark. Looking further ahead, 2019/20 APW1 multigrade has seen tonnes trade at $325/MT and F1 multigrade at $265/MT.

The old crop market is following the same upward trend with increases week on week of $12-30/MT. The biggest mover has been higher protein wheat grades with H1 searching for traction at $390/MT and APW1 at $365/MT. The same is also true for the delivered market with SFW1 being the big mover at $367/MT.

Port Lincoln zone is a similar story with new crop APW1 MG up $20/MT week on week to see bids around the $368/MT, CAN at $580/MT and F1 at $332/MT. Although conditions on the Eyre Peninsula are improving, there is still a long away to go before growers will feel comfortable with the season and as such we haven’t really seen the market connect. Wallaroo and Giles port zones have seen new crop bids follow the upward trend with Wallaroo F1 MG at $323/MT and APW1 MG at $356/MT. Giles ended the week with new crop bids of F1 MG $325/MT and APW1 MG $361/MT.Cleve Field Days let’s hope the rain decides to play the game and provide the state with some good rain fall.

Photo: Cereal crop at Port Clinton Yorke Peninsula.

 

Prices as at 9th August

 

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