SA Market Update – 22/06/2018

Kate Phillips, Agfarm Account Manager SA

AThere have been good rains over the past week for most South Australian growing areas ranging from 5-50mm. While we could always use more, and the season is not out the woods yet, it has had a good boost, and with it so has grower confidence and the height of germinated crops.

The 8-day forecast is on the lean side, but the state should see around 1-5mm. The longer-range forecast for June – July is showing a couple of widespread cold fronts that should bring good rain events at the end June and into mid-July. Let’s see if the meteorologists are correct or if we see it peter out again.

In South Australian market news, the rain and current market conditions have brought a very slight softening to the new crop wheat market but not to the level everyone was expecting. This has most speculating buyers are still looking for additional forward coverage, and that while confidence is on the rise a level of caution still remains. APW1 Multigrade (fixed spreads) 2018/19 prices can be locked away at $297/MT levels with spreads remaining steady at H1 $10/MT – Fed1 -$70/MT. The new crop barley market is stronger again week on week with Port Adelaide and Port Lincoln track both offering selling opportunities at $263/MT.

Sellers in most SA port zones continue to sit on a good level of pulses. The hope from some is with the lack of feed available, pulses will start to come into feed rations at higher levels presenting the chance to capture some opportunistic selling.

Growers continue to shift old seasons wheat and barley into the feed market. SFW1 is finding delivered homes in the Adelaide zone at $310-312/MT. Higher protein wheat is still seeing buying interest at around $333/MT and $315/MT respectively.

Old crop canola prices for the Adelaide and Port Lincoln track markets continue to be hard to source, and when they can be, they are still sub $500/MT with buyers happy to sit around $490/MT. New crop price is sitting at $525/MT around $5/MT off the best levels we have seen for the coming year.

 
 
 
This will be one to watch as we hear more reports of canola being swapped out for the more traditional coarse grains due to the seasonal conditions. If planted HA do end up coming right back, we should start to see the 2018/19 canola bids gain some strength.

Pictured left to right:
– Crop coming through at Moorlands on the drive from Murray Bridge to Lameroo
– Little less advanced crop at Parrakie on the way to Lameroo
– Visit with Bree Tapscott, Andrew Willis and Koda the dog

Prices as at 21st June 2018.

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