Reid Seaby, Agfarm Regional Manager WA
This week’s focus was the continuous dry weather in the US which is severely impacting winter wheat conditions and positively impacting US futures. The US crop conditions currently sit at a 10-year low, the USD is being supported by a positive trend in economic growth which is expected to continue, Australian crop growing regions desperately need moisture and the AUD is depreciating on the back of some poorer economic outlooks by the RBA. The result, a sea of green for domestic markets. The positive move was seen across both new and old crop grain with 2017/18 APW1 in Kwinana gaining $2/MT to $292/MT FIS, ASW1 jumping $10/MT to be $287/MT FIS and CAN1 ending the week $5/MT higher at $530/MT. There was a significant spike in new crop APW1 which ended this week at $310/MT FIS in Kwinana, a massive $26/MT higher than last Friday.
Unfortunately, the news wasn’t so great weatherwise with the vast majority of cropping regions experiencing another dry week. Some small pockets in the south along the Albany and Esperance coastal regions picked up some rain from the front that drifted through early in the week. The dry conditions however aren’t preventing growers from getting their crop in the ground, although we are now starting to hear of a few who are slowing down or even pulling up until we get a decent rain event.
Prices as at Friday 4th May