SA Market Update – 25/05/2018

Kate Phillips, Agfarm Account Manager SA

The cool, overcast days in South Australia have continued this week and while areas need rain, the dry days mean crop can get in the ground fast without rain holding up proceedings. The eight day forecast is showing a promising front coming through towards the end of the period. At this stage, it looks like all growing areas from the EP across to the Mallee should see a reading in the rain gauge of somewhere between 5-25mms. Let’s hope as this front nears the promise of rainfall continues.

 
 
Germination is kicking off in most areas with the south east looking good. The Adelaide, YP, Mid North and EP areas are looking good as well although there is still concern about how dry it is on the fringe of some of these areas. Growers around Loxton and through to Karoonda are still kicking up dust and will be looking to the skies as the next week or so progresses. While some areas are fairly well off from a moisture perspective, it is by no means wet.

Growers in the lower mid north are already putting their seeding gear away after a good run. As a state-wide percentage, we are looking at being around 80% through with most expecting to be done by the first week in June if not beforehand.

Markets for the week have remained strong with buyers continuing to bid new crop at similar to higher levels than the previous week. 2018/19 forward APW1 multigrade bids are once again seeing an upward trend as the season uncertainty remains. This is reflected in bids of $300/MT in both Adelaide and Port Lincoln zones. Canola has seen a $5/MT rise as well with bids on the board of $525/MT. Feed barley is the only new season commodity to be seeing no real change week on week, currently being bid at $257/MT.

The old crop market has been a bit of a mixed bag over the past week with APW1 and H1 in the Adelaide zone up at similar levels to last week at $290/MT. The big mover for the week has been the SFW1 delivered market. This has seen a steady increase with buyers looking to pick up tonnes for May-June delivery at an attractive $310/MT for the Northern Adelaide market. It will be interesting to see just how far the number needs to go to garner grower tonnes.

Prices as at Friday 24th May 2018.

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