Sam Davidson, Agfarm Account Manager SA
We saw another sleepy sideways week for wheat markets this week with prices moving along at +/- $2/MT. APW1 Port Adelaide track bids managed to hold at $295/MT for most of the week but without aggressive bids or offers, trade volumes remain thin resulting in sideways movements week on week. We’ve seen some interest in both the bid and offer components of the market for higher protein wheat, however offers at this stage are anywhere from $2-5/MT above bids and buyers aren’t exactly panicking for cover.
Delivered buyer markets are also a mixed bag with feed wheat buyers well covered over the near term. Delivered SFW1/ASW1 markets remain subdued with Murray Bridge and Mid North Adelaide markets remaining unchanged week on week. APW1 delivered to Adelaide packers on the other hand managed to rally $9/MT but still sit well below grower offer levels. This indicates traders are happy to utilise system stock for the time being and pick up grower delivered parcels if and when they present themselves.
Feed barley track markets have shown a nice little bounce over the past week with Port Lincoln track bids for new crop moving from $260-270/MT, and Port Adelaide track holding on at $285/MT. While the gain in Port Lincoln indicates exporter interest, the lack of price movement in Port Adelaide indicates low buyer demand plus low and slow seller liquidity.
Canola markets continue to elude offers with the highest weekly bid seen at $505/MT Port Adelaide track. Due to the drier than average winter and a lackluster autumn break, growers are happy to sit tight on unsold stock and speculate on upside later in the year.
Prices as at 12th July 2018.