Matthew Noonan, Agfarm Account Manager SNSW
Rainfall continued to allude most cropping areas in central and northern NSW and QLD. Some small falls were recorded in eastern and south east areas of NSW and some larger falls up and down the QLD coastline. The heat being experienced through much of the country sure didn’t stay away from these areas. While temperatures through much of QLD where around the mid 30oC, central parts were getting slightly warmer heading into the Darling Downs and in the south western areas hitting around 40oC. Much of NSW for the week ranged between 38-42oC which will put some pressure on September/October planted sorghum crops trying to finish off and December/January planted acres to get up and about. The further south to south west you go the hotter it gets with White Cliffs, Hay and Ivanhoe up around 47oC on Wednesday just gone.
Markets into domestic consumer points have remained steady to slightly softer for wheat and barley into the Darling Downs. SFW1 is at $435-445/MT and barley is at a spread of $28-35/MT under wheat with options around $400-407/MT delivered. Western and far north of Darling Downs is mostly carrying a $5-10/MT premium above the delivered Darling Downs options. It seems the softening of price here is due to some buyers getting cover/comfort around positions and the imminent arrival of the new sorghum crop. Early reports on sorghum harvest are coming in with yields around 2-3MT/ha on early sown crops. With sorghum being around a $80-90/MT spread under wheat it will likely grab some traction into rations.
Moving into NSW, Liverpool Plains feedlots are ranging between $435-445/MT delivered while a premium of $5-10/MT seems to be the norm for destinations like Rangers Valley and border feedlots. Barley lacks a bit of demand issue into northern NSW main consumer points but is holding a similar spread from wheat as the Darling Downs at around $25-35/MT under with prices mostly around $395-400/MT delivered with occasional buyer interest at around $410-415/MT. Sorghum delivered Newcastle is around the $380/MT level while delivered Liverpool Plains is pricing at around $375/MT March/April/May delivery. Liverpool plains hasn’t had the acres planted like southern QLD but early indications on some yields around Moree are 1-3MT/ha from dryland crops and is a welcome distraction for consumers.
Prices as at 17th January
* View of current market pricing. Does not represent current Agfarm bids.