Giles Ditchfield, Agfarm Account Manager SA
It has been another mixed week in South Australia on the weather front, with wind and warm temperatures continuing to be the major contributors. However it looks as though large parts of the Eyre Peninsula, upper-, mid- and lower-North along with parts of the Lower Murray could be in for some rain according to the 8 day BOM forecast. As well as the hot temperatures, we have continued to see grain markets rally, with strong demand for F1 Barley resulting in the Adelaide track market being above $250/MT. Although we have seen this increase in feed barley, the spread to malt has narrowed, with Compass and Spartacus trading at the same levels as feed.
Prices wise, H1 is at $290/MT, APW1 has been trading at $254/MT, while the ASW1 spread to APW1 is not far behind trading at $243/MT. The movement on the wheat and barley market is reflected across all port zones, with Port Lincoln seeing $250/MT for F1, $252/MT for APW1 and $240/MT for ASW1. The canola market hasn’t moved much in the last week.
We have also seen the delivered markets continue to heat up this week into Murray Bridge and Semaphore. Murray bridge is currently trading at $250/MT for ASW1, which has seen a large amount of grower engagement and selling. F1 into Semaphore is trading at $257/MT, however we are seeing trades at $260/MT for March/April. The wheat numbers into Semaphore are trading at $262/MT for APW1, with a $20/MT spread to H2. These strong numbers have seen parcels being offered up in the system, exfarm and delivered, whilst there are some growers who are happy to sit back and watch the market as it continues to rise. Only time will tell where this market tops out.
Prices as at 16th Feb 2018