SA Market Update 28/09/2018

Kate Phillips, Agfarm Regional Manager South Australia

The week has brought warming temperatures, no rain and commodity prices that continued to rise. The state really needs a soft finish to the season as the variability continues and areas really start to show the stress they are under.

On the forecast front, rain the state needed over the past few days doesn’t seem to have eventuated. There is the possibility areas may receive small falls in the coming week which well be well received. Even the smallest of rainfall totals will assist the crops move into heading.

Hay is being cut in many areas. With hay prices on the rise, growers have been doing the sums on potential yields and the outlook for the remainder of the season to determine if they cut for hay or continue towards reaping. Some growers don’t have the option with crops too low in height.

New crop markets saw the continued upward trajectory. Port Adelaide canola realised a $602/MT and Port Lincoln $593/MT. Even at these season highs, the market is seeing little grower interaction as most are still happy to sit back and watch until there is grain in the bin. APW1 wheat has seen some interest reaching $430/MT with tightening lower spreads but again, the majority are taking a watch and wait approach. We have seen some good red crop selling, with those keen to lock away strong 2019/20 prices able to do so as $330/MT Port Adelaide and $320/MT Port Lincoln.

To those of you who have younger families I hope you have a safe and enjoyable school holidays.

 

Prices as at 27th September

 

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