SA Market Update – 09/02/2018

Kate Phillips, Agfarm Account Manager SA

This week South Australia has witnessed some real heat, both in temperature and grain values. While this increase in commodity price has seen some good trades, it has also seen several sellers sitting back to see where the flurry of bidding activity takes values. There is positive chat about the return of pre/early-harvest pricing levels. So far, we have seen wheat and feed barley values gain an average of $10/MT Port Adelaide. Mid-week saw F1 hit $245/MT with multiple buyers which led wheat values to follow suit. H1 is at $285/MT, APW1 has been breaking through the $250/MT barrier with bids of $251/MT, and ASW1 has been brought along at $239/MT. Even the continuing soft canola numbers have seen a $5/MT lift, to be now sitting around the $485/MT mark Port Adelaide.

The exfarm/delivered market is starting to engage at larger levels with strong ASW1 Del Murray Bridge bids of $245/MT successfully attracting tonnes. The continued strong bidding from buyers on del Semaphore/Adelaide parcels of H1-F1 has also seen the market connect. Here H1 is placed at $295/MT, F1 at $250/MT and APW1 at $260/MT. Port Lincoln, Thevenard, Wallaroo and Port Giles zones have also fared well with the recent price activity. Some buyers looking for coverage have been drawn with bids for H2 at $267/MT, $251/MT, $266/MT and $261/MT respectively.

Fires in the Clare Valley and Kangaroo Island have proven to be tough to contain over the past few days, and our thoughts, as always, go to those in the areas that have been affected. The hot temperatures are forecast to subside tomorrow, so the weekend is looking at days of mid-to-low 30s. While Victoria and Western Australia are in for some good rainfalls, South Australia has very little on the radar. The lower South-East may get a shower or two to dampen down the dust, as may the lower Yorke Peninsular, but the rest of us look like we will have continued to draw down the dam levels to keep the lawns looking green.

SA pricing tables 201802092