SNSW Market Update 02/08/2019

Matthew Noonan, Account Manager Southern NSW

3 minute read

Much of southern NSW received a good drink of 5-15mm’s last weekend and into Monday. This consolidates current potential through eastern, western and southern Riverina and allows crops to get well into August. Northern Riverina and heading into the central west and northern south west slopes were unfortunately on the lighter end again with 0-5mm’s. This area desperately needs a decent drink in August before we get into September and temperatures start to warm up.

The past week has seen steady pricing for the most part. Old crop has continued to firm slightly with Griffith market zone now pricing around $365-370/MT Aug-Sep delivery. New crop bids on the east coast continue with a cautious sideways to slightly firmer movement looking for some engagement. Over the next four to eight weeks weather in southern NSW will be closely watched to see if this area can hold somewhere near its current potential which will help bring supplies to better levels than last year for NSW as a whole.

Old crop barley has maintained its pricing levels this week. There are still smalls moving from SA/VIC/SNSW into the north and east of NSW for livestock feeders (mostly ewes/lambs). The next few weeks should start to see some livestock removed from paddocks where it looks like good grain/hay potential is present. Some crops in the north will be forfeited to livestock with current crop conditions and seasonal outlook for spring. New crop values have also remained steady to slightly firmer with the same factors as wheat playing out i.e. lack of liquidity and concern over the NSW crop and where production will end up.

New crop canola stayed firm week on week with again similar factors to wheat and barley playing out. Some paddocks around have started to flower but overall canola needs to see production potential hold for the most part everywhere on the east coast. If we were to lose say 10-20% of current potential this would really put pressure on supply into key consumers, and at this stage, WA canola pricing doesn’t particularly work to the east coast ports.

 

Pictured: Frosty morning in Coolamon

Prices as at 2nd August

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

 

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