SA Market Update 26/07/2019

Kate Phillips SA Regional Manager

2.5 minute read

There is a lot of time between now and harvest, but can I just say how great the state is looking at the moment! I’m hard pressed to find an area that isn’t a carpet of green with well-established crops, regular showers and damp sub soil keeping things ticking along. Compared to this time last year the season is shaping up nicely.

The BoM does continue to show a dry and warm spring though and this has kept forward selling to a minimum with last year’s tough conditions still fresh in many minds. If the new crop pricing really kicks along, we may see this change.

Weather, for the most part, is doing the right thing by South Australia. We are seeing regular showers which is keeping sub soil moisture damp to wet in many areas. The Upper North, border areas north of Loxton and parts of the Murray Mallee could all use a good drink to bring levels up to other regions in SA. We are seeing some spraying take place across the state and continued top ups of urea.

Markets have been relativity flat week on week with little action to spur growers into locking away new crop tonnes. Both growers and buyers have been happy to sit back and watch the season unfold with new crop pricing continuing to sit south of the $300/MT mark. Spreads are being offered at both floating and fixed with fixed spreads at around H1 +$18/MT through to Fed1 at -$70/MT. Old crop pricing has eased off to again be sitting at around $300/MT for both wheat and barley. The domestic market continues to see sales into dairy and sheep feed.

 

Pictured: sea of green at Cooke Plains

Prices as at 25th July

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

 

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