SNSW Market Update 10/05/2019

Matthew Noonan, Agfarm Account Manager

2 minute read

Diesel has been burning night and day for a little while now. Most were trying hard to get a good amount in before last Friday’s change in which most of southern NSW received decent planting rainfall. Hopefully a bit more will grace us in the next 24-48 hours to consolidate what crops are in the ground. Some comments from around the region are that the start so far is a lot better than last season. It just needs to keep coming and more importantly, come in the spring. Old and new crop have now given back most of the gains they made in early April, with old crop in some cases suffering further erosion on the pricing front.

Old crop feed wheat markets have been pushed down further due to the recent rains and optimism towards the 2019/20 crop condition. Griffith market zone is now priced around $350-355/MT delivered for May + carry. The second half of 2019 will still need to see a lot of grain make its way into southern and eastern NSW markets from a long distance away. Where it is possible it will originate from regions such as SA and WA. The better the 2019/20 season crop shapes up on the east coast pricing will come under continued pressure. If it deteriorates in any way, upside will be pushed along.

The barley story continues to see demand being its biggest issue. Some winter feeding of livestock is occurring while grazing crops grow enough to let the sheep out on them. Old crop prices in the system have held pretty steady for a number of weeks now while wheat has yo-yo’d over the same time period. Due to recent rains, new crop pricing has reduced by $10-15/MT now around $265/MT Port Kembla track.

Canola old crop has come off around $5-10/MT in the system with Port Kembla track now priced around $595-600/MT. Delivered crusher markets remain rather steady in similar ranges to last week. New crop is also still steady. While the recent rains have benefited cereals, they may have been a little late to incentivise more canola acres. New crop is priced around $580-583/MT Port Kembla track.

 
 
 
 

Pictured: Canola sowing in Murrami NSW.

Prices as at 9th May

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

 

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