SA Market Update 3/08/2018

Kate Phillips, Agfarm Account Manager SA

With the dry continuing to dominate discussions in the grain sector all eyes continue to monitor weather sites and patterns in the hope that the much-needed rain eventuates here in SA. The BOMs eight-day forecast shows the possibility of falls between 5-20mls for most of the grain growing areas, so let’s hope that this next front doesn’t weaken and pass the state by. We are also beginning to experience warmer days, with the mercury hitting the low twenties over the last few days. This, combined with the strong winds that many areas are also receiving, is leading to even greater need for the crops to get a drink.

On my travels around this week I have been encouraged by the crops I’ve seen. Despite being quite far behind compared to a “typical” year, they are hanging in there. Most crops are showing good colour and little variability, so all that’s really needed is a bit more moisture.

In the markets last week we saw strong increases in both new crop and old crop markets, and this week we have seen bids explode upwards with new crop bids up $20- $30 week on week. These are numbers that three months ago would have had growers locking in quickly, but again the seasonal conditions and risk appetite means that these numbers, while attractive, are only being considered cautiously by many sellers.

New crop APW1 Multigrade has been the biggest upwards mover this week, with buyers bidding Adelaide track $365/mt and Port Lincoln track $348/mt. This is closely followed by F1 Multigrade at $332/mt Adelaide and $328/mt Port Lincoln.

Old Crop APW1 and H2 have seen the biggest upward swing this week with APW1 at $345 Adelaide track, up $35 and H2 up $35 as well at $355/mt. Growers are wondering how much more upside there is to this rise and so seem to be holding off with a “wait and see” attitude. A number of buyers are more than happy to view offers on old crop parcels.
As we gear up to head over the Cleve Field Days let’s hope the rain decides to play the game and provide the state with some good rain fall.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prices as at 2nd August

 

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