WA Market Update – 29/03/2018

Reid Seaby, Agfarm Regional Manager WA

 

This week Profarmer wrote a short note on finance options for the 2018 season, focussing on ‘finance for grain’ products, which is of course a category that Agfarm’s Accelerate falls within. It was really pleasing to see Accelerate succeeded in passing on the factors that growers must take into consideration when deciding on seasonal finance. There was a lot of emphasis placed on understanding whether you must sell your grain to a particular provider, whether there is a tonnage commitment, what the advance rates are, and whether the facility can be cleared with cash. It was correctly noted that when locked into a buyer there is no guarantee they will be the best bid on the day of sale, therefore it can be a significant opportunity cost and hence effectively increase the cost of funding. There are obviously no grain marketing limitations for those who adopt Agfarm’s Accelerate.

In wheat markets, bids were essentially unchanged this week. Canola was a touch stronger and barley was quite mixed. Kwinana APW1 was down $1/MT at $283/MT FIS, H2 was down $1/MT at $293/MT and ASW was also down $1/MT at $270/MT. Kwinana F1 finished the week at $288/MT FIS and canola in Kwinana was up $5/MT to $515/MT FIS.

Prices as at 29th March 2018

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