Reid Seaby, Agfarm Regional Manager WA
Another solid week of harvest has seen CBH receivals reach close to 11.5MMT. Overall, WA crops have continued to yield slightly better than expected but protein levels have been disappointing. The last of the tonnes in Geraldton are trickling in, with total deliveries close to 1.5MMT, exceeding CBH’s original 1.2MMT estimate. Kwinana and Esperance are roughly 95% complete against CBH estimates, with Kwinana deliveries closing in on 5MMT and Esperance receiving about 2.5MMT. The Albany port zone is close to 80% complete with the majority of the canola and barley completed and in the bin. About 60%, or 800KMT of wheat has been harvested in Albany and the majority of the state will aim to be complete by next weekend, just in time for Santa’s arrival.
Kwinana bids drifted lower again with limited international demand or news. However, growers with higher quality grain are benefiting from substantial grade spread as the market is chasing protein. Price spreads from APW1 to H1 remain about $20/MT. Likewise, discounts of $20/MT apply between the APW1 and lower protein ASW1. Canola markets are significantly lower at $525/MT FIS Kwinana, relative to $547/MT last week. This pressure is coming from offshore markets as well as from continued grower selling, which has seen bids come off by more than $40/MT in the last month alone.
Prices as at Friday 15th December 2017