VIC Market Update – 05/01/2018

Sam Davidson, Agfarm Account Manager VIC

Victorian wheat markets continued to consolidate this week, with cash markets closing a touch firmer across the majority of both milling and feed grades. ASW1 delivered Melbourne/Geelong prices for January forward are effectively tracking sideways from last week, with prompt delivery demand providing thin support. Delivered buyer/track spread finished the week $2/MT firmer, with Melbourne/Geelong delivered buyer markets bid sitting at $9.25/MT over track. We should see this spread continue to widen by an additional $0.75/MT throughout January. This can be attributed to domestic markets pricing grower parcels stored onfarm in place of prompt off-the-header demand.

Barley markets experienced harvest selling pressure this week with F1 bids throughout the Melbourne/Geelong port zones weakening $6/MT week on week. Delivered buyer bids for the Melbourne/Geelong domestic market remained unchanged at $250/MT January delivery, as traders’ struggle to attract onfarm tonnes in any significant volume. Merchants and end-users are actively bidding for both onfarm and warehoused F1 parcels located in the Portland, Melbourne and Geelong port zones.

Local canola cash markets saw reduced pressure this week with Melbourne/Geelong track gaining $6/MT week on week. Delivered markets were a touch weaker with Southern NSW bids down by $9/MT. While reduced selling has provided the most support in local cash markets, we have received some assistance from favourable moves in the AUD, gains in both Matif rapeseed futures and ICE canola futures, plus increased domestic buyer activity covering near-term shorts.

 

Prices as at Friday 5th January 2018