Kate Phillips, Agfarm Account Manager SA
A week of cooler nights, sporadic rainfall and mostly sunny days has seen the great state fair well from a growing perspective. The BOM’s long range forecast is currently showing June has a good chance of exceeding the median rainfall with most of SA at this stage anticipating falls totalling 10-30mm’s with the south east rain gauges hopefully filling to the 30mms + marker. The northern growing areas of South Australia will definitely be hoping for the rain to reach them with these areas looking dry.
There have been reports of good germination in most growing areas of South Australia with seeding progression now sitting at around the 85-90% complete. We would be expecting those who are still going (or to get going in some cases) to be putting their machinery away in the next week or two. If good rain does fall over SA, then we may still see some take the chance on a very late plant knowing parts of northern Vic and into NSW remain dry.
The new crop market has remained steady over the past week. APW1 Multigrade on the Adelaide track was slightly softer at the start of the week but buyers were happy to bid at $300/MT towards the later part of the week and sellers were happy to lock in good levels at this number (fixed grade spreads). Several buyers also have APW1 multigrade bids with floating spreads at less -$4 to be present in the market at around $294/MT. The feed barley market is floating at around the $258/MT mark with most growers happy to watch the market and not jump in at the moment.
New crop canola has seen a $10/MT increase week on week to be sitting at $535/MT for both Adelaide and Lincoln track. There has been some selling interest, however for the most part, those who have canola in their rotation seem to be happy to sit and see what the season brings. Old crop canola bids are scarce. Those who are holding and looking for a home are struggling to get much interest from buyers. When a number is out there it seems to come off the table quite quickly.
The old crop market has strengthened for the most part. The major mover during the week has been the feed barley market both onfarm and in the system. Adelaide track has seen a significant upward swing to $15/MT stronger at $282/MT. Even at this strong number we have seen little selling interest as those who have it, have been happy to sit and see what the next week brings.
Prices as at Friday 31st May 2018.