SNSW Market Update 12/10/2018

Annabelle Honner, Agfarm Freight Coordinator

Henry Davis, Agfarm Commodity and Finance Analyst

Not much news on the weather front this week with mostly clear skies throughout the region. There were a few localised falls later in the week bringing anywhere between 0-10mm in the north and western parts of the Riverina and anywhere up to 25mm closer to the border. Looking ahead, there is some rain forecast for the later half of next week, with anywhere between 10-15mm predicted to fall across the region, which would keep things ticking along. Grower selling remains sparse resulting in grain markets firming $5-10/MT this week. With grain being taken from port to up country, a reverse of what typically occurs, it looks as though prices will continue to be well support inland.

Old season wheat delivered numbers remained relatively unchanged this week with consumers mainly interested in purchasing new season demand. The ASX wheat forward contract saw a sharp price spike after being sold down to $425/MT on Monday and was trading at $440/MT on Friday afternoon, up $15/MT for the week. The buying interest was driven by the increasing downgrades on production levels for NSW and Victoria.

Consumers have started to look at new season barley demand as the warmer months approach but are not actively bidding the market. Despite large acres of barley being planted in Australia, production levels are declining due to adverse weather. Barley production in NSW last year (2017/18) was 1.15MMT and new season production has been pegged by the industry at 550,000MT.

Oilseed crushers continue to worry as we hear more and more reports of canola being cut for hay to reduce production risk and capitalise on strong hay numbers. Delivered canola into Wagga Wagga is $643/MT for December and there is a $30/MT discount for GM canola, unchanged from Monday.

 
 

Pictured: Irrigated flowering canola in Murrami NSW

 

Prices as at 12th October

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

 

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