CNSW Market Update – 26/07/2019

Anthony Hall, Regional Manager NSW & QLD

2 minute read

The current weather position has held its status quo of not much rainfall for northern NSW and into QLD. Unfortunately, the forecast doesn’t lend itself to any improvement in moisture levels. This will continue to put pressure on crops that have been planted and are out of the ground. Some of these are hitting walls and starting to deteriorate through central NSW, northern NSW and southern QLD. There are a few exceptions around where plants have been able to push below and tap into lower moisture levels. Driving into the south from Dubbo through to the south coast this week and the majority of crops from Manildra through to Boorowa are looking quite good. However, as you head over the mountains through to the south coast it becomes a lot more hit and miss.

The hope at present is we see good spring/summer rainfall in the north. If this eventuates, we will see wall to wall sorghum, corn and dryland cotton planted as there is plenty of fallowed paddocks ready to go. The only inhibiting factor here could be the supply of sorghum seed.

On the marketing front, there has been hardly any old crop sales as grain continues to be supplied from WA and SA into the north. This is likely to continue into next year. In a ‘normal year’ you would expect some might be around 10-20% forward sold heading into spring. However, with the past 12-18 months in the rear-view mirror and the current BOM spring forecast, it’s expected most are sitting at or close to 0%. Even with southern NSW and VIC looking quite good these areas are lacking forward sales engagement and this lack of liquidity is one of the main factors pushing new crop values higher.

 

Pictured: Dairy operation near Bega NSW.

 

Prices as at 25th July

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

 

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