CNSW Market Update – 30/11/2018

Anthony Hall, Agfarm Regional Manager NSW & QLD

Weather this week hasn’t been ideal for harvesting, with most reporting 2-3 day delays due to rain. The heavier falls were in the south of NSW were falls of 25mm plus were common. The northern part of the state only received 5-10mm. It’s worth noting for summer crop opportunity the Liverpool plains area received anywhere from 15mm – 35mm which will allow some to start sowing sorghum. Throughout the cropping belt in QLD only 5-10mm was received, which is disappointing considering the summer crops are in need of a moisture top up. The forecast is showing clear skies and warm weather for the next week, this will allow most to finish off harvest north of the Bogan river.

 

Wheat markets have come under pressure in the latter half of this week. The spike in last week’s market when some shorts started to appear saw a fair amount of grower selling which in turn softened prices as consumers again sought comfort in their positions. SFW1 delivered Darling Downs (Jan) peaked throughout the week at $435/MT but quickly fell to $430/MT once positions started to fill. With the majority of wheat coming off H2 or better, it has kept the feed consumers searching far and wide to find growers willing to sell 70/10 wheat considering the premium is still there for milling wheat. Most growers are seeking some coverage at these prices which means plenty of wheat is selling off the headers.

In barley markets, the areas with lower production are seeing most growers replenishing their onfarm feed supplies to continue feeding livestock for the next 11 months. So, lack of barley selling and positions needing to be filled has seen markets remain firm off the lows we experienced last week in relation to the Chinese buying concerns. F1 delivered Darling Downs was bid at $415/MT with minimal offers. The border markets continue to trade higher than the Darling Downs with bids of $418/MT at time of writing.

The sorghum market has fallen to $356/MT delivered Darling Downs. There were reports of forward selling in the areas that received good rains over the last two weeks. The jury is still out as to how big this sorghum crop will be. The size is obviously going to be governed by the in crop rain going forward as a lot has already been planted on less than ideal subsoil moisture.

Prices as at 29th Novebemer

 

 

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

 

Follow us on social media