VIC Market Update – 06/04/2018

Giles Ditchfield, Account Manager Victoria

 

Although most growers are ready to commence sowing or are busy putting in their last-minute preparations, the forecast remains dry with little rainfall on the eight day BOM radar. The back end of next week looks promising for some regions of VIC. The Western Districts and parts of Central Victoria are looking at 10-15mm with the potential of more in localised areas. Growers are looking to stick with their rotations again this season rather than modify their sowing program to chase an ‘in demand’ commodity. While the new crop numbers for wheat, barley and canola have all come off in recent weeks, current season grain, feed grades in particular continue to gain momentum.

 
 
 
 
We have seen strong interest from buyers on delivered and system feed grade wheat and barley, particularly ASW1/ SFW1 and F1. SFW1 is trading at $250/MT onfarm for May pickup in areas of Central Vic, while F1 del Melbourne Port Terminal (MPT) is $280/MT for May and into Geelong terminal, it is $282/MT. Where buyers are short on their positions we have seen them happy to pay up to get coverage. H2 del MPT started off at a $295/MT this week and has risen to a $299/MT for prompt delivery.
 
LA1 has also been well bid on the Melbourne track, and we have seen selling at these levels. The current dry conditions have resulted in a large percentage of grain, which would have typically been sold by now, to be held back onfarm as either security for the grower or for sheep feed. We expect to see this trend continue until a substantial break in the season occurs.
 
Canola had another positive week rising once again with one buyer paying $4-5/MT above the rest. Unfortunately, these prices didn’t last long indicating sufficient coverage has been reached.
 
Hopefully we see a seasonal break in the coming week and grain prices continue to rise.

Prices as at 6th April 2018

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