WA Market Update – 17/08/2018

Reid Seaby, Agfarm Regional Manager WA

The WA cropping belt remains in excellent shape and failing any periods of significant heat stress or frost (touch wood) we remain on track for a 10MMT+ wheat crop. Most areas, with the exception of Esperance and the eastern Albany zone, are expecting above average yields on their cereals and average yields on canola. Growers have been heartened by the conditions as well as the price and are seeking to take advantage of the season by applying more nitrogen fertiliser than they normally would, hoping to maximise production and boost protein levels.

Taking a closer look at the regions. The Geraldton zone still has terrific potential with a full moisture profile across most of the district. So too does the Kwinana zone, however some areas further east don’t have as much soil moisture so will be relying on a good September rain to finish the crops off. The Esperance zone and dryer parts of the Albany port zone have had some kinder weather over the last few weeks which has enable most areas to get back on track and hopefully achieve average production. Some areas of waterlogging in western and southern parts will benefit from some drier conditions over the next week or so.

dramatic upside we have witnessed in markets over the past few weeks may have come to an end for the time being after the USDA report released last Friday night was less bullish than what was expected. Domestic grain markets have however managed to move higher again this week with malt barley being the big mover, up $13/MT to finish at $388/MT FIS in Kwinana. Feed also climbed higher to end the week $5/MT up at $350/MT FIS. New crop wheat was unchanged while canola settled at $605/MT FIS Kwinana, $2/MT higher than last week.

 

Williams has had a little bit of rain lately.

 

Prices as at 16th August

 

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