Kate Phillips, Agfarm Regional Manager South Australia
This week I spent time down along the SA/VIC border and heading over to the Wimmera Field Days. It was nice to see the temperature gauge hover in the low 20s. It was even a chilly 4-degrees Thursday morning and I had to pull out the winter jacket.
We are starting to see a few seeding rigs brought out of the sheds for pre-seeding maintenance in the hope this might make the rain clouds appear. With seeding only around eight weeks away for some, it will be interesting to see if and how cropping intentions change between now and then. ABARES released their 2019/20 estimates and have wheat pegged at 23.9MMT. It will be interesting to see where this settles once seeding is underway.
We all watched the grain price soften significantly in February. Thankfully the start of March has brought with it a strengthening in values. Growers and consumers continue to be disengaged for the most part. We may well see this change in the coming weeks if consumptive demand tightens.
Grain markets continue to see small premiums being paid for high protein wheat, but this is still only sitting at around +$10/MT from APW1 to H1. Barley really is just barley now with little to no spread from feed to malt. On the Malt barley topic, RGT Planet has recently been accredited as a malting variety. With qualities such as robustness and high yield it may well become of interest to growers. As with any new variety though it will still need to find support and pricing from the market.
Delivered markets this week have given growers with grain onfarm some good selling opportunities with F1 barley into Adelaide zone homes steady at around the $310/MT mark and ASW1 and SFW1 wheat finding traction at around $340-346/MT. H1 delivered bids this week are sitting at around the $371 mark.
Prices as at 8th March
* View of current market pricing. Does not represent current Agfarm bids.