Matthew Noonan, Agfarm Account Manager Sounthern NSW
It has been encouraging to see prices, for the most part, have held their gains from last week. The past few weeks have seen a lot of February-March delivery options taken up for onfarm F1 barley and ASW1/SFW1 wheat. A few thunderstorms around the region have dropped small amounts of rain, but it has remained mostly dry. As we approach March some will be looking towards the skies for a break in order to get sowing underway for the 2018/19 season.
Wheat stock in the system is heavily sold, however we are still seeing new trades most days, largely for H2/APH2/APH1. We have achieved some decent numbers of $2-8/MT above the best published bids for ASW1/SFW1 this week. H2 exfarm has been of interest, with some good parcels and prices in the South West Slopes upwards of $280-285/MT exfarm for February-April pickup. ASW1/SFW1 has been pricing lower than barley for the most part over the past month. In the north and the South West Slopes we have been getting around $260-270/MT exfarm, while in western and southern areas it has been closer to $250/MT exfarm. As we nudge closer to the sowing window, we are keeping any eye 2018/19 season pricing for multigrade contracts. Although we are long way out, $290-300/MT Port Kembla track is a good base point to start the new season marketing.
Onfarm barley sales kept a steady pace this week, with the best price being $263/MT exfarm heading north. There was also some business for March movement into Western Riverina homes at around $260/MT delivered. Even though we are not sending a lot of barley or wheat from our region to Melbourne/Geelong zone this year, it must be noted the good demand and pricing has probably kept pressure on barley heading north. Melbourne delivery hit as high as $275/MT February-March, which would be getting the Victorian grower more than $240/MT exfarm. With these higher prices, we may see more acres of barley planted this year.
Canola has continued to show some life over the past month, with overseas movements and a better local dollar edging prices higher every few days. This has allowed for at least three boats of canola to be put on stems, set to leave Victorian ports over the coming months. The Victorian balance sheet shouldn’t be affected too much until we see another two or three boats leave our shores, but for NSW it does remove some production we might have hoped to draw on. Wagga Wagga has been pricing above $500/MT delivered for a few days, while Newcastle has edged over $530/MT. The PKE track market has seen some trades go through at around $480-490/MT site, which equates to around $524-525/MT. We are keeping a close eye on this as most feedback from growers has shown if we continue to edge higher to a trigger point of $490-500/MT site, we may see any surplus stocks sold and 2017/18 wrapped up for grower tonnes in PKE.
Prices as at 23rd Feb 2018