Alistair Murphy, Agfarm Account Manager CNSW
Markets have firmed once again this week, with the Darling Downs feed wheat market being the biggest mover. This week’s upside seems to correlate more with the continued dry outlook here at home rather than any overseas influencers, although we did see a kick in international futures late last week which helped spur things along.
Markets have firmed enough over the last seven days for SFW1 and ASW1 wheat to hit $300/MT onfarm for a lot of areas, which in a traditional year would bring with it a flurry of selling. But it just simply isn’t the cast at the moment as growers are still very concerned about the continued dry weather we have been experiencing, and there doesn’t appear to be too much respite on the mid-range forecast.
The continued dry has also seen cattle prices come under pressure as primary producers look to destock, helping margins in the feedlot sector which up until recently haven’t been fantastic.
Spot barley trades between growers and graziers have still been ticking over but in relatively small volume, and at some pretty staggering numbers as well. We expect this trend to continue until some significant rain eventuates.
Growers are starting to write canola off as a sowing option this year, as the ideal seeding window is upon us. And if we did receive the required two to three inches to kick things off, planting rigs would have to wait at least five to six days for it to dry out enough to sow. If the canola window does become compromised due to lack of available moisture, we expect these intended acres to be switched out to more barley and wheat.
Chick peas have continued to be priced around the $600/MT values delivered Central NSW packer this week, although similar to last week, continue to see limited selling enquiries.
Prices as at 19th April 2018