Alistair Murphy, Agfarm Account Manager CNSW
The majority of markets have firmed this week, with most delivered feed homes moving up around $1-2/MT. Track base grade wheats made additional gains anywhere between $5-7/MT, mainly due to the trade transitioning from track seller to occasionally interested buyer now the rain event didn’t eventuate to what was expected.
Grower sentiment remains subdued in Northern NSW and Queensland. Even though there have been some decent falls around, the rain was far too inconsistent and light to provide any type of widespread improvement in seasonal conditions moving forward.
We have seen some sporadic germination in parts of Central Western NSW with areas around Nyngan, Trangie and Narromine having received enough rain to kick things off. Although it won’t be long until these crops need another hit to keep the momentum going, as we just simply don’t have the subsoil moisture available.
Long distance road freight rates appear to have reduced in the last few weeks, which has created some opportunities for growers to sell a little more old crop into the Queensland and Liverpool Plains feeder markets at some good values.
Old crop canola values haven’t done too much work to the upside which is surprising given the majority of growers the Central West have now written off any type of oilseed production, but I suspect buyers would still feel comfortable that if need be, they should be able to pick up stock in Victoria and Port Kembla once harvest rolls around.
The farm to farm feed market has eased up a little bit now some rain has been received, although there is still interest out there in areas which didn’t receive as much in the rain gauge. But, much like the winter crop, if we don’t receive follow up rain in the next few weeks we will start to see this market fire back up again.
Prices as at 5th July 2018