VIC Market Update – 31/08/2018

Giles Ditchfield, Agfarm Account Manager VIC

It continues to be a very interesting season with the weather still causing concern throughout large parts of the state. The last few days we’ve experienced some very cold and frosty mornings. If any significant damage has occurred it will start to show in the next week or so, but there is already talk of some being affected by stem frost. Given the relatively immature stage of some crops, if we get some decent rainfall it could give the plant enough time to recover from this and re-tiller.

On a more positive, note we should hopefully see some rainfall over the next few days with an even bigger front on the radar for the back end of next week. Let’s hope this doesn’t disappear!!

We have seen prices move to the downside over the past fortnight. This looks as though it may have plateaued, if not rallied in recent days on the back of this frost talk and overseas markets. SFW1 delivered Griffith continues to be well bid trading between $418-423/MT while new crop SFW1 is at $415/MT for Jan/Feb delivery. This bid is drawing tonnes from a wider arc and has seen some liquidity over Melbourne bids.

Barley also continues to be well bid, which has seen interest from growers looking to sell. Many still feel the production risk is too high, while those with irrigation or in the higher rainfall areas are more confident they will now be able to produce a crop.

Canola delivered Footscray is currently trading at $509/MT, with many hesitant and feeling there is still more upside to the market on the back of the current canola crop. New crop track canola is varying between $595/MT for Portland and $603/MT for Melbourne.

 
 
 

Pictured: Cereal crop – Wimmera Victoria

 

Prices as at 30th August

 

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