Sam Davidson, Agfarm Account Manager Victoria
Victorian wheat markets managed to hold onto last week’s gains and even managed to move a tick higher in places. We saw a slight move to the downside on feed wheat delivered to the western districts for a May/June delivery period but a slight uptick for ASW1 delivered to the Melbourne Geelong zone. Limited open demand from traders continues to provide enticing opportunities for growers holding unsold 2017/18 season wheat on farm and reasonable volumes of SFW1 are still trading at $300/MT exfarm throughout Central Vic.
Barley markets managed to post a move higher as tighter supply and unchanged demand places support on what are already historically high prices. Both exporter and domestic end users are actively engaging the market but are struggling to extract firm offers from the grower. Malt buyers re-emerged this week which is encouraging for those growers still holding old season malt barley.
Canola markets remains predominately bid by trading houses with oilseed crush plants or bulk handling networks to support. Increased production risk priced into this market indicates the trade are more than aware of dry conditions and the grower is at this stage unwilling to add much more to their forward sales.
Delivered markets are slowly starting to reflect the cost of execution, indicating traders are just starting to use ex system stock in place of delivered tonnes. Market dynamics remain unchanged with old crop values determined by trade flows, from surplus region to deficit, and new crop values determined by weather forecast.
Prices as at 17th May 2018