SA Market Update 05/07/2019

Kate Phillips SA Regional Manager

2.5 minute read

The great state was hit by a couple of warmer than average winter days last week and you could almost hear the crops jumping out of the ground. The cooler temps are back again though along with some small rainfall across the state. The recent rain has ensured that, while there is still a long way to go, the crops are in a much better position than this time last year.

While the rainfall has been very well received and grower confidence is on the rise, there is still an air of caution about. Growers have seen the BOM reports showing a high probability of a dryer August and September and last year is still very fresh in most minds. This caution is noticeable in the lack of new crop forward selling. While price is sub the “historical” $300/MT trigger point, the weather is the main culprit in caution when planning marketing mix and risk management.

In marketing news, we are seeing a sea of red. Both the old and new crop markets are softer across the board with most old crop bids now being POA. South Australian new crop is starting to close the gap on Black Sea values globally but still has work to do. We are also starting to see the sheep feed demand is starting to fall away.

School holidays are upon us again, so I wish all the families out there a safe and happy holidays!

 

Pictured: Most crops looking good on a trip from Callington – Mannum – Mantung – Sandlewood – Karoonda.

 

Prices as at 4th July

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

 

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