WA Market Update – 09/08/2018

Reid Seaby, Agfarm Regional Manager WA

The season continues to be kind to the WA grower, both from a pricing and production perspective. More rain has fallen in the past seven days and grain markets have maintained their bullish tone.

Most parts of WA have had a really good start to the month with two or three strong cold fronts dumping rain that will boost the WA production outlook even further. Most regions received between 5 – 25mm on Thursday and similarly again on Friday/Saturday, with the majority of places receiving >25mm cumulatively. Wednesday night’s rain was generally confined to the coast, but inland parts did receive up to 10mm in places; which is more than enough to preserve current moisture levels. These rains have come on the back of above average July rainfall in the Geraldton and Kwinana zones, and average July rainfall in the Great Southern. In stark contrast to this time last year (and I apologise to those who are in desperate need of rain), western parts of the Albany and Kwinana zones are now seeking some fine weather.

Turning our attention to markets and the news only gets better, with more monstrous moves to the upside over the past week. New crop APW in Kwinana has popped over $360/MT FIS after being sub $350/MT only a week ago, while canola has also tipped over the $600/MT milestone. Barley bids pushed higher again with BFED1 up a whopping $23/MT week on week, to finish at $345/MT FIS in Kwinana. The upcoming USDA report on Friday night might provide further price direction, particularly if there are some unexpected surprises.

 

Photo: Canola at Bakers Hill (approx. 20km West of Northam on the Great Eastern Hwy)

 

Prices as at 9th August

 

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