VIC Market Update – 17/08/2018

Giles Ditchfield, Agfarm Account Manager VIC

Victoria has seen a similar story to last week, little rain and grain markets increasing. Isolated areas managed to pick up 10mm however this wasn’t widespread. Growers are still hoping for a good fall of 15-25mm to ensure an average yielding crop is achieved. The BOM forecast shows the Western Districts, Southern Mallee, Wimmera, Central Vic and the North East should be in for rain from Friday through to Sunday, coming at a perfect time for the crops in these areas.

The markets continued to rally this week, with little selling occurring and declining production forecasts in areas, especially NSW, causing concern amongst the trade. The trade is trying to get coverage on new crop, however growers are very hesitant to sell with the current season. Old season stock is being well bid on prompt delivery, but large amounts of grain are still being held back onfarm to feed livestock.

ASW1/SFW1 delivered buyer Griffith continued to gain momentum with another $10/MT movement from $410/MT to $420/MT. Even the new crop SFW1 number is extremely strong at $425/MT. Stock is moving from the North East and along the river however the drawing arc is starting to widen into Central VIC. This drawing arc has caused Victorian millers to increase their bids to ensure they see the flow through their own sites.

Barley continues to be well bid exfarm and delivered. New crop numbers remain very strong with F1 sitting around the $386/MT track mark.

The general sentiment is canola isn’t following the footsteps of wheat and barley, and there is further upside in both old and new crop bids. Canola delivered Melbourne is at $604/MT November/December with bonifications.

It’s going to be another interesting week on crop conditions, pricing and the weather. Fingers crossed they are all favourable and the wind dies down so everyone can get their spraying done.

 

 

Prices as at 16th August

 

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