Alistair Murphy, Agfarm Account Manager CNSW
International futures softened this week after the most recent USDA report come out more bearish than expected, although this didn’t stop our domestic market firming up during the week. The main reason for the further divergence against international futures is the continued dry weather, and potential frost risk in the more southern areas of the East Coast cropping belt. We’ve also been hearing of more forward contract washouts coming to market from southern areas of Port Kembla and VIC, which has been adding a little more strength to the bid side.
The medium-term outlook doesn’t provide too much rainfall to set us up for much of a summer plant as yet, although its early days still so there’s plenty of time yet catch some weather.
The local farm to farm grain market has eased of its highs from a few weeks ago, with recent rains giving some of the country a chance to produce some green pick. The farm to farm wheat trade has definitely slowed down as this is the least favourable option for graziers to supplement stock, although we are still coming across good demand for spot loads of barley being freighted up from VIC and SA.
The Darling Downs feed market has also made a move this week, after a few weeks of traversing a relatively narrow range. This appears to be due to the slowing of physical selling in WA and SA, which in turn is making it harder for traders to find replacement stock to execute by vessels into the Brisbane port zone.
Prices as at 13th September