SA Market Update – 18/05/2018

Kate Phillips, Agfarm Account Manager SA

South Australia has turned on the cold tap this week with coldest morning recorded since last September. Keith had a morning temp of -1 degree and around the Kanmantoo area it was 3 degrees. While there has been widespread low-level rainfall over the past few days, areas such as the Murray Mallee are still looking to the sky for much needed precipitation. There is a prediction of 1-6mm on the eight day outlook for more agricultural areas.

Farmers continue seeding at a fair pace with the rain in most areas not being significant enough to pull them up. Those in the drier areas continue to dry sow with the belief rain is just around the corner. Canola hectares are all but done, with crops in the Upper South East germinating. Barley and pulse hectares are well under way with wheat going in as well.

The week has been has seen a mixed bag of commodity pricing and grower enquiry. Old crop canola is still a struggle to home. There are a few local delivered homes in the Port Adelaide zone but the pricing level continues to see sellers holding. The concern here is new crop canola is going in the ground and if the rain and fair conditions continue, we are likely to see a level of comfort from buyers and we may see bids soften further. Forward canola contracts can currently be locked in for $520/MT in both Port Adelaide and Port Lincoln zones.

South Australian wheat markets are the pick of the bunch this week. New crop APW1 multigrade contracts can be locked away at $295/MT Port Adelaide zone with Port Lincoln at $290/MT, Thevenard at $276/MT, Port Giles at $290/M and Wallaroo at $281/MT. At these levels we have seen growers showing comfort and locking in forward contracts. Old crop wheat prices have also provided some good opportunities for growers. The biggest swings have been in the milling wheat market with bids up $5-10/MT week on week and providing good sales for those who are still holding old season crop. H1 bids are steady in the $330/MT ball park for both Port Adelaide and Port Lincoln with Port Giles only $10/MT away with bids able to be locked in at $220/MT.

The feed barley market is also looking positive with old crop F1 up $13/MT. There are plenty of buyers in the delivered market space as well with feed lots and those with stock looking for feed cover. This has also proved beneficial for those still holding F2, F3 and off spec tonnes.

Prices as at Friday 17th May 2018.

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