SA Market Update 25/01/2019

Kate Phillips, Agfarm Regional Manager South Australia

As the Billy Idol songs goes it’s “Hot in the City” …. Adelaide set a new record today (Thursday), one I would have been happy for us to miss. The hottest on record is 46.1oC back in 1939. As I write this, it is already 46.5oC and we haven’t reached the expected peak at 4.30pm. I am feeling for all of you who will be having hotter days than this, with Port Augusta heading for a top of 49oC.

 

While the temperature heats up grower selling has cooled. This has been driven by commodity values slipping back to values we saw briefly in November last year and a lack of system stock. We are still seeing interest in delivered market pricing, but this is tending to be more “window shopping” than anything else. Pool providers, for the most part, have closed their main pools with a number of secondary pools now open for anyone looking be part of a managed program with the potential for some good upside. With the BOM suggesting a continued drier than average first quarter for South Australia it will be interesting to see how the domestic market reacts.

The biggest downward shift came in the feed barley market with the Port Adelaide track market back $18/MT to end Thursday at $308/MT week on week and back $22/MT Port Lincoln track with the bid ending the day at $274/MT. The wheat market is also back but it didn’t see the softening the barley market saw with week on week losses of around $5/MT for both the Adelaide and Lincoln track markets. The spread to higher protein wheat is really starting to be dialled back now with most premiums sitting at around the +$8-10/MT mark from APW1 to H1

Prices as at 24th January

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

 

 

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