SA Market Update 14/06/2019

Kate Phillips SA Regional Manager

1.5 minute read

The rain so desperately needed by many made an appearance earlier this week. The day prior to the rain was one of the warmest June days for many years and the rain front brought the best falls seen in two years. This event has brought much needed relief to many areas and an increase in confidence in the season. Rainfall for the week ranged from 19 to 75mms with a few more fronts appearing on the eight-day radar. The recent rains will help solidify the potential of the season and should see crops start to come along nicely. Agronomists will be kept busy with crop checks and spray plans.

This week has seen continued buying interest in barley for sheep feed. Although the paddocks are turning green there is still the need for feed. Those who have held onto old crop tonnes are seeing bids in a similar ball park to last week for both wheat and barley. Wheat is continuing its run north of $300/MT with Port Adelaide APW1 at $320/MT, H1 at $335/MT and AUH2 at $300/MT. Barley has made a sideways move into this week at $310/MT.

New crop bids remain steady. APW1 Multigrade is a tick above the $300/MT trigger at $303/MT and F1 barley multigrade is at $250/MT. Port Lincoln has followed suit with a $10/MT spread between port zones with Lincoln at $293/MT for APW1 multigrade and $240/MT for F1 barley multigrade. Canola continues its run at $556/MT for both Adelaide and Lincoln.

 

 

Prices as at 14th June

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 07/06/2019

Tom Guthrie, General Manager Account Management

1 minute read

Winter is here across the great state following a cold and dry week. Rainfall is forecast over the weekend and will be welcomed throughout the cropping belt.

Production prospects continue to improve in most regions as rainfall catches up on a late break and a slow start to the season. Like WA and Victoria, SA will need a kind winter and spring to bring this crop home.

Some grower selling was noted late last week and early this week on the up tick in values for wheat. However, the pull back in values over the last two days has turned off grower selling for now.

In most regions sowing is now complete, which in turn will allow growers to enjoy a well earned break over the long weekend, maybe even make it to Adelaide Oval to watch the ‘Pride of South Australia’ beat up the Giants!

Pictured: Some mixed levels of germination through the Murraylands. In general, the area is in need of a couple of solid rain events before they feel confident in the season.

 

 

Prices as at 07th June

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 31/05/2019

Kate Phillips, Agfarm Regional Manager South Australia

2 minute read

There has been a definite chill in the air this week, with daytime temps steady in the low teens and overnight temperatures hovering in the single digits. The smell of wood burning in fireplaces is heralding the official start to winter over the coming weekend.

Rain has continued to fall across much of the state to varying degrees. Areas such as the Eyre Peninsula, Yorke Peninsula and Mid-north have had falls from 10-20 over the past week, while areas around the Murray Mallee and Murraylands are still in need of a few solid rainfall events with 2-5 falling over the past week. The eight day outlook is showing the possibility follow up rain across most if the states growing areas.

Soil temperatures are hovering in the low to mid-teens. Sowing is speeding along in all areas and in varying degrees. All areas have those who are finished and those who are only just kicking off, a week from now will have the state all but done. Crops are emerging, and reports are positive for the most part, across the state.

Grain markets saw both the old crop barley and wheat bids lift across all port zones. F1 Barley broke back through the $300 mark Port Adelaide to sit around the $315 mark, a number that is seeing engagement for those few that have tonnes left to sell. Wheat is a similar story with strong gains week on week in the range of + $25 to be the north side of $300 at $327 Adelaide and $305 Lincoln. New Crop bids have gained momentum over the past week with APW1 multigrade again breaking through the $300 trigger point for many at $315 Adelaide and $305 Lincoln. F1 Barley multigrade is following suit with slightly softer gains with bids positioned around $265 Adelaide and $250 Lincoln. Delivered old crop bids are again sitting north of $300 with F1 delivered Wasleys $315 and Murray Bridge $325. ASW1 delivered Tailem is currently being bid $330.

 

 

Pictured: Freshly sown paddock near Bordertown, SA.

 

Prices as at 30rd May

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 24/05/2019

Kate Phillips, Agfarm Regional Manager South Australia

1.5 minute read

South Australia has continued to see mild weather conditions through most of this week. Temperatures have remained in the low 20’s for most parts of the state and the rain that did fall was enough to keep most areas damp, but more is still needed. The BoM eight-day forecast is showing some good possible falls but let’s see what eventuates once the fronts arrive.

Earlier this week took me up through the Murrylands and around the Loxton area. While there was a nice a greening up of most areas, it was evident many areas are still lacking the subsoil moisture required to really kick things along. Seeding across the state is moving along nicely with all regions well underway. In each area we are seeing a variable level of completion from almost complete/finished to just under way. With the mild weather conditions and soil temperatures, crops are already emerging and growing nicely.

Markets ended Thursday with all new and old crop commodities in positive territory. This is a nice change to recent weeks which has seen prices week on week continue to weaken. The strongest gains have been in the new crop APW1 multigrade bids with both the Adelaide and Lincoln track numbers up $15/MT to end around the $270-275/MT mark. The end of trade on Thursday this week saw some strong interest in the old crop APW1 market with a sharp rise to it hit $300/MT.

 

 

Pictured: Cereal crop out of the ground near Loxton SA.

 

Prices as at 23rd May

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 17/05/2019

Kate Phillips, Agfarm Regional Manager South Australia

2 minute read

How good is the ground starting to look around SA at the moment! I’m always amazed at how a little rain and some warm ground temperature has barren land turning a tinge of green almost overnight. Not to brag too much, but we even have a few centimetres of water in our dam.

This week I took a drive around the Yorke Peninsula checking seeding progress and how the area is looking. The mood across not only the Yorke Peninsula but the state in general is one of optimism and positivity for the season ahead. While the majority of the state has had some nice rain over the past fortnight more is still needed. And while the ground is turning into a gentle sea of green, there is already dust being kicked up by sowing rigs in paddocks and vehicles on dirt roads.

With sowing charging ahead across the state, we should start to see sowing riggs being cleaned up and packed away for the next season. Others who waited for the rain are kicking off but will be going while the weather permits. The BOM is showing another possible front coming through over this weekend with follow up rain the week after.

 
Grain markets are almost as soft as the soil. Old crop markets have fallen again over the past week on the back of good rainfall and movements in the wheat market. Growers who are holding old crop tonnes are looking for homes before the price softens further and to free up cashflow for seeing costs. Old crop wheat has taken the biggest hit again this week, but barley bids are not too far behind. New crop canola bids have remained relatively unchanged week on week at $545/MT for both Adelaide and Lincoln tracks. The stock feed market continues to see interest from those still looking to feed sheep.

Until next week – happy seeding and may the rain fall where you are!

 

Pictured: Port Vincent, Yorke Peninsula

 

Prices as at 16th May

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 10/05/2019

Kate Phillips, Agfarm Regional Manager South Australia

2 minute read

I don’t want to get too excited too soon but it’s RAINING! Where I am at least…

I am in Meningie today (Thursday) and there is water in the rain gauge and more falling as I write. While more is needed, it is certainly nice to be reporting on rainfall across much of the state. The lower south east and Murray Mallee are still waiting for the rain to hit them. Hopefully the front predicted to pass through the state tomorrow will bring the much-needed moisture, and with it, a level of confidence for those dry seeding and a start to those who have held off.

Turning our attention to sowing intentions this year, canola plantings, as expected, will be well down due to the dry. Those who did get rain or were in a more “reliable area” are well into their canola plant and should be done within the next week or so. Cereals continue to go in. There is no panic just yet as the sowing window is still wide open.

Ground temperatures have just started to move downwards with the days proving to be mostly cool and cloudy. The average recorded soil temperatures for the state over that past few days are sitting in the range of 11-15 degrees at the 5-10cm depth mark. Cooler days have also meant we’ve started using the fireplace and I have to say, nothing beats sitting by the fire at night.

Grain markets are relatively cool as well. The barley stockfeed market continues to be fluid with farmers looking for sheep feed. Wheat is currently a different story with more supply than demand. We will wait to see how the rainfall over the past few days plays out on the new crop bids. While South Australia has seen some rainfall, it still hasn’t fallen in most regions to the level ideally required, but it has fallen, and we may see the market follow suit as it gains some positivity in the season ahead.

 

 

Pictured: Hay heading north at Tailem Bend

 

Prices as at 9th May

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 03/05/2019

Kate Phillips, Agfarm Regional Manager South Australia

2 minute read

There was a strange occurrence in SA this week… it rained! Now while there hasn’t been a lot, it has fallen and has, if nothing else, settled the dust and given the weeds on my lawn a drink. The BOM was giving us hope of falls between 20-30mm. This proved correct for areas from the Eyre Peninsular to the Yorke Peninsular and into areas of the mid north. Unfortunately, for other areas around the state such as the Murray Mallee and areas of the south east, little to no falls were recorded. There does appear to be the possibility of rain on the forecast towards the back end of next week and this will hopefully provide some relief for those who have missed out on this week’s rainfall and provide follow up rain for those who were lucky enough to have already received some.

Despite the dry, sowing continues across the state with some growers making the decision to dry sow. Others are taking a more conservative approach and will wait for the opening rains before commencing. While we’re in the midst of the ‘ideal’ sowing window, there is still plenty of time to get a crop in the ground or to make the decision not to.

Wheat has seen a softening over the past few weeks with consumers fairly well disengaged. Barley has remained more buoyant with stock feeders continuing to engage and fulfill their feeding requirements. This is hardly surprising with most of the state’s agricultural land resembling a moon scape. The delivered market continues to provide some good options for those who have grain remaining on farm.

In new crop markets, barley and canola are the pick. Canola has seen an upward swing of between $8-11/MT from the last Agfarm weekly report to sit in the range of $541-543/MT. There is a fair bit of chat around canola hectares being well down in SA this year, so it will be a wait and watch scenario to see if the new crop bid reacts to this. Barley has seen some small increases in the last week or so with Port Lincoln being bid $230/MT and Port Adelaide $240/MT. As mentioned previously, wheat has seen a softening over recent weeks and it will be interesting to see what the recent, and possibly continuing rainfall, will do to these numbers.

 

 

Pictured: Another picture perfect sunrise in Springton SA

 

Prices as at 2nd May

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 18/04/2019

Kate Phillips, Agfarm Regional Manager South Australia

The only thing I can see on SA’s forecast in the next week is a delivery of Easter eggs on Sunday morning. There is a slight chance of some falls, but this is likely to disappear over the coming days, as has been the case since the start of the year.

It’s a dry start to sowing 19 as expected and with the start has come a quietening in the market. Everyone is just watching, and it is likely to stay this way until the market gets a bit of a feel for how the season is likely to progress.

Over the past week APW1 wheat has come back slightly for the Port Adelaide zone and with it has brought a softening in the premiums for the higher protein grades. The new crop market continues to hold firm with growers able to lock away forward contracts for APW1 multigrade wheat at $295/MT. Growers are also able to fix grade spreads or look to keep these floating. The new crop barley market is level week on week with only new crop canola for the Port Lincoln zone showing a slight weakening, back -$3/MT to sit at $530/MT. There hasn’t been a tonne of new crop contracts written at this stage and with the weather and conditions as they are, this is completely understandable.

There has been increased interest in the sheep feed market across the state. F1 barley is being secured at $350-355/MT delivered farm mid north with a $5-15/MT spread down to F2/F3. For those still holding wheat onfarm there are delivered bids for ASW1 delivered Murray Bridge at $341/MT and SFW1 delivered Wasleys at $334/MT.

I wish you all a happy Easter. May you get to pop your feet up for a well-deserved rest at some stage over the break.

 

Pictured: Picture perfect in Kimba SA

 

Prices as at 18th April

* View of current market pricing. Does not represent current Agfarm bids.

 

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SA Market Update 12/04/2019

Kate Phillips, Agfarm Regional Manager South Australia

So, what’s new in South Australia this week? Not much! Sowing will begin in the next week and it certainly looks like it will be a dry start. The radar is showing a little precipitation on the forecast, but this will still only be 1-5mm if we see anything.

Markets continue to be relatively flat. Week on week the only real change we saw was a slight increase in 2018/19 F1 bids with a +$5/MT for Adelaide zone to sit around the $305/MT level and Lincoln +$4/MT at $266/MT. New crop canola gained some strength as well, +$3/MT to sit at $533/MT for both Adelaide and Lincoln zones.

Both consumers and growers continue to be fairly disengaged from the market. The sheep feed demand is, however, remaining constant on the back of dry conditions and little feed on the ground. We are seeing sales around the $350-355/MT level delivered onfarm for mid north areas.

Prices as at 11th April

* View of current market pricing. Does not represent current Agfarm bids.

 
 
 
 
 
 
 
 
 

Pictured: Feed time with barley supplied by Agfarm.

 

 

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SA Market Update 05/04/2019

Kate Phillips, Agfarm Regional Manager South Australia

I am ready to start a rain dance if anyone wants to join? Even with the cooler temperatures and grey clouds, little to no rain fell across the state this week. The plant 19 kick looks as though it will be a dry event for most areas. It would seem South Australia might even take the prize for the driest start to the season. The cooler days of last week are also fading as the temperatures heating back up to the mid-30s.

The domestic feed market is where most market activity seems to be at the moment. We’re seeing a fair bit of over the fence feed sales along with system sales into the livestock feed market. 2018/19 F1 barley is finding homes at around the $355/MT mark with growers reporting handshake trades with neighbours at similar levels.

For those looking to lock in forward sales contracts as part of their sales program, Port Adelaide zone wheat APW1 multigrade is sitting sub $300/MT at $295/MT with Port Lincoln zone $5/MT behind at $290/MT. There has been a slow crawl towards the $300/MT trigger mark, it will be interesting to see how many lock in at these numbers on the back of a lean year for some last year and a dry start to this one.

There are still premiums to be found in the higher protein wheat grades. H1 is sitting at around + $35/MT at $370/MT Port Adelaide. Barley, as has been the case for a number of weeks, is showing no premium to malt and it is very much a story of barley just being barley. Canola new crop bids as slightly softer this week.

 

 

Prices as at 4th April

* View of current market pricing. Does not represent current Agfarm bids.

 

 

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