CNSW Market Update – 19/10/2018

Anthony Hall, Agfarm Regional Manager NSW & QLD

The storms keep rolling through NSW and QLD spreading some hope of better times ahead. Unfortunately, these storms brought hail and wind, which has seen damage to crops, horticulture enterprises and even deaths in livestock. Some areas received in excess of 50mm in the last change, this combined with the last two rain events should see many busy on the planter in the coming weeks. With time on our side and still experiencing mild weather, most will let weeds germinate over the next 10 days, spray and then start sowing.

The terribly dry winter has left NSW and QLD with a significant amount of fallow country to fill, and with sorghum prices quite high, it looks as though we will have a big sorghum plant on our hands. Sorghum seed suppliers called in on all contracts this week pressuring stores to use or loose unallocated seed reserves as the demand from QLD growers has exploded in the last week and they are struggling to secure seed.

 

Harvest in some parts of QLD will get started again this week with the rain only holding this up for four to five days. Quality reports are unaffected due to how quickly the weather system moved through the cropping belt. Growers seem to be sellers of all commodities off the header or as soon as it hits the silos which is understandable with cereals still trading in high $300/MT low $400’s/MT and chick peas high $700’s/MT. Harvest in Northern NSW should start in about a week.

Domestic prices were a little softer this week in light of the rain. From a trading and consumer perspective, all eyes are on the summer potential and how that may change the feed demand. Oct wheat into the Downs was $460/MT with a $5/MT spread to Nov/Dec, so not a great deal different to last week.
 

Prices as at 18th October

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

 

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