CNSW Market Update – 13/11/2018

Anthony Hall, Agfarm Regional Manager NSW & QLD

Summer cropping opportunities continue to be the hot topic amongst growers in Northern NSW and QLD this week with the big falls predicted on Thursday and Friday. Rain recorded was between 20mm to 30mm in most areas (more forecast at time of writing). This means sorghum crops in the ground will make it through to produce grain and also increase the chance of more hectares going in for the late plant, being December/January. Some of the early sorghum crops around the Moree and Goondiwindi district are set to come in very early this year and harvest should start the last week in January or first half February. Sorghum prices this week have come under pressure again with consumers pulling back values in light of the much-needed rain to assure production. The hope of a 1.5MMT plus crop has sought comfort in supply leading to the spread widening between wheat and sorghum again this week. Delivered Darling Downs finished trading this week $352/MT and Newcastle at $374/MT which is down $5/MT on last week.

Wheat maintained its strength this week despite the liquidity in grower selling. With harvest all but complete growers can now reconcile stocks and set their marketing strategy in place. In general, most are selling protein to capitalise on the premiums over the feed market. Wheat SFW1 Darling Downs is pricing at $432/MT, the border markets are at $440/MT and Liverpool Plains are around $430/MT.

Barley has again fallen this week, one would hope the market will see some stability soon. Will lack of grower selling turn this market around? Maybe not in the short term as consumers are pricing on the back of full execution of bringing barley around from other states. The spread between wheat and barley is still around $35-40/MT difference. Barley Darling Downs is at $398/MT, the border markets are at $403/MT and the Liverpool plains around $379/MT.

 

Prices as at 13th December

 

 

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

 

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