SNSW Market Update 14/06/2019

Matthew Noonan, Agfarm Account Manager

2.5 minute read

This past week has seen most locations in southern NSW, Riverina and southern South West Slopes receive 8-20mm’s (more in some cases) with lighter falls moving into the Central West of around 1-5mm’s. With some production certainty creeping in throughout the southern third of NSW smalls of new crop may be looked at with pricing mostly around decile 8 or better.

Old crop wheat markets softened on the back of rains throughout WA, SA and south east Australia over the past week. However, with futures remaining neutral to bullish for now, local and international pricing looks like it will continue its yo-yo affect through to new crop. The Griffith market got down to $370-375/MT delivered earlier in the week but the past few days has pushed higher again searching for a bid towards $385-390/MT plus. The new crop Port Kembla track market is slightly firmer week on week up to $350-355/MT which has two drivers at present. The northern Port Kembla zone still lagging condition wise and the overseas world supply picture is somewhat bearish but getting pushed along by US corn and some dryness in Russia and Canada.

Barley remains rather steady and through much of southern NSW and into the South West Slopes at minimal margin to old crop wheat. As moisture builds in some grazing crops it may provide graziers a chance to reduce feeding requirements, but with current lamb prices and plenty of interest in store lambs, some feeding should continue keeping a base under this part of the barley market. New crop is also steady with Port Kembla track still around $285-290/MT. The spread from wheat (ASW1 spread) is around $40-45/MT which makes wheat a better sell, but the Australian barley crop should be quite decent so current prices going the distance could be seen as ok levels subject to how the rest of the season pans out across the country.

Canola pricing is not doing much at all. Crushers are relatively well covered through to new crop with fair value around $600-613/MT Port Kembla track at present.

New crop remains steady even though VIC and southern NSW received reasonably good growing conditions with recent rains but the underlying feeling is that acres are less year on year and conditions in the Central West are not allowing canola to get going. There was talk of some canola having to get replanted due to crusting over of the soil from heavy rains in May.

Pictured: Canola in Murrami NSW

Prices as at 14th June

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

 

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