SA Market Update 22/02/2019

Kate Phillips, Agfarm Regional Manager South Australia

This week, with markets and grower engagement remaining relatively quiet, I took the opportunity to jump in the car to have a look around the state. Things are obviously still dry right across the state. Some areas are starting to resemble a moon scape where even the smallest puff of wind causes a dust storm. Other areas have been able to maintain some stubble cover so at least the dirt is staying where it should. As dry as it is, the mood remains positive with many growers well underway with cropping plans for the coming season. These plans, understandably, will be altered based on moisture profile, the weather outlook and a grower’s risk appetite the closer we get to the seeding window.

Onto markets and it’s another week where we see red pretty much right across the price change matrix. Wheat is definitely just wheat now and it’s a similar story for barley with spreads all but gone. There doesn’t seem to be anything showing domestic consumers are well covered, nor is the weather outlook giving off too many signals of good rainfalls in the short term so we may well see commodity prices start to gradually move north again.

Barley this week took the smallest downward hit with feed barley Port Adelaide track back $4/MT to settle around the $294/MT mark. Port Lincoln came back $10/MT ending the week at $260/MT. Wheat saw a week on week softening of between $25/MT and $34/MT. New crop 2019/20 bids are starting to get some attention. Bids are strong and while not at the levels we have just come from, there are positive numbers that can be locked away for those who are happy to start their early marketing mix.

 
 
Photo: Salt Lake a Lochiel, SA

 

Prices as at 21st February

* View of current market pricing. Does not represent current Agfarm bids.

 

 

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