VIC Market Update – 20/04/2018

Giles Ditchfield, Agfarm Account Manager Victoria

Sowing has started!!

If growers aren’t sowing they are busy preparing their land through burning, pre-watering or spraying. There is little rainfall on the radar and as a result if we don’t get a substantial break in the next few weeks, growers will be looking to change their sowing programs to reflect this. The eight day BOM forecast shows there is little to get excited about in terms of rainfall in Victoria.

 

Over the weekend, parts of the state received some much-needed rainfall, however it wasn’t enough. The rain was followed by very strong winds which completely dried out the paddocks; less than 12 hours after the rainfall, it looked as though it hadn’t rained at all. With the dry forecast looking to continue, delivered and exfarm markets continue to remain strong for all commodities.

Prices as at 20th April 2018

 
Melbourne/Geelong and Portland all continue to be well bid with multiple buyers trying to purchase tonnes to cover their positions. Even though buyers are very site specific, we have seen some very strong trades over the last week. Melbourne track F1 traded at $282/MT earlier this week while H1 and H2 are currently trading at $317/MT and $301/MT respectively on the Portland track. Canola has been trading on the Portland track at $512/MT and $508/MT on the Melbourne track. Feed wheat is at $260-262/MT exfarm throughout parts of Central Vic, and $254-256/MT exfarm in the Wimmera. SFW1 is at $285/MT into Hanwood for May delivery or $290/MT for July. Feed barley continues to gain momentum, with F1 into Charlton at $270/MT for April/May.

Even with bids improving week on week growers are still hesitant to sell. They feel there is still more upside to the market, and for those mixed farming, there is concern around feeding livestock.

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