SA Market Update 21/09/2018

Kate Phillips, Agfarm Account Manager South Australia

The past week has seen several grain events held across South Australia. Last Friday was the 2018 Growing SA conference in Hahndorf which was well attended. It was great to catch up with growers and to hear from leading industry experts on several topics. The overarching theme was around GM canola crops and the review of the moratorium this year. Tuesday was the Hart field days and then Thursday had growers and industry leaders gather in Minnipa for their major field day.

Spring temperatures have been a little kinder on the state this week with temperatures staying around the mid-teens. The eight-day forecast shows little to no rain, temperatures starting to rise and some areas in for a possible frost. It continues to be a season of great variations both from a growth, yield and weather change perspective.
Markets this week have gained good upward momentum again. The frost in WA and less than ideal conditions across most growing regions in all states will have driven some of this, along with foreseeable production issues with some forward contacting and the market looking for cover.

Growers on the Northern EP and Northern YP have started considering how much to hold onfarm with the view to push tonnes into consumptive homes, packers, feedlots and other alternate pathways rather than traditional bulk handler storage options. This has a similar feel to the 2006/07 harvest when grain from the northern EP made its way into northern Victoria. The main challenge for some growers will be managing their grain quality and onfarm storage options.

New crop APW1 multigrade showed the strongest gains exceeding the $410/MT mark to end Thursday at $413/MT a $33/MT increase week on week. Even at these strong levels, little is being locked away as growers sit back and watch while many are not willing to take the risk with production levels still a concern.

Barley followed a similar trajectory to that of wheat with Port Adelaide F1 multigrade realising a $30/MT increase week on week and Port Lincoln F1 multigrade a $15/MT increase. Canola in South Australia has itself seen increases although not to the level of wheat and barley.

As we head into the final quarter of the growing season let’s hope for nice finishing rains and a gentle finish. Oh, and go the Melbourne Demons!

Prices as at 20th September

 

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