SNSW Market Update 07/12/2018

Matthew Noonan, Agfarm Account Manager SNSW

The last week has allowed harvest to progress further with dry conditions and warmer weather drying out crops from rainfall in past 10-20 days. West of the Newell seems like it is closing in on the final stages of harvest and growers to the far east are starting on wheat which should be complete in the next 7-10 days. The weather outlook looks favourable for continuing harvest with no more storm interruptions.

Wheat harvest is closing in on the final stages throughout central, eastern and southern NSW. It looks as though the majority will be done by the end of next week. Crop quality looks good with around 70% or more being H2 or higher. Pricing over the past three to four days remained firm with little change. Some delivered markets have at times jumped up to grab demand/cover. But for now, most grades in the system throughout Port Kembla are north of $400/MT site with some APH1/APH2 levels being around $450/MT and $440/MT respectively providing very good historical pricing levels. Sooner rather than later wheat will become wheat with the feed market demand in our backyard needing grain.

Barley week on week has remained steady. The last 24 hours have seen some better pricing creep back in with the spread to wheat ($30-40/MT under) now likely to get some domestic consumers utilising it in the ration to a degree. Exfarm pricing is around $390-410/MT for pickup through Dec – Mar. The Port Kembla track market is ranging from $408-420/MT but is very site dependant. The biggest question around barley is how much has been stored onfarm, and how does that match up with the demand outlook. With demand currently lighter than the past few years, supply may be just enough to cover, but this is reliant on weather and continued supply from WA for northern markets.

Canola is basically the same week on week with the majority harvested throughout NSW. There is some still coming off in the far east and towards VIC border. Pricing levels seem to be holding at around $585-600/MT site. The outlook will depend on how much cover crushers have on east coast. It doesn’t look like the market will push lower as harvest progression moves throughout VIC, but it will keep a lid on prices.

 
 

Pictured: Wheat harvest in the Riverina

Prices as at 6th December

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

 

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