Matthew Noonan, Agfarm Account Manager SNSW
Well, the furnace got turned up this week. With temperatures well above 40oC and some reaching 45-47oC it’s reasonable to assume most would have been on early morning and evening duties. There is some small relief on the radar for the weekend with temperatures ranging from the mid to high 30oC. Markets remain quite steady and boats are again starting to leave WA and arrive in east coast ports. Pulse markets are firm for the likes of chickpeas (Desi’s) and faba beans with prices ranging from $700-900/MT, while more domestic consumption types like lupins into stockfeed rations are pricing at around $550-600/MT exfarm.
Wheat has become wheat sooner than most would like. Grade spreads unless it is APH1 or APH2 are minimal with hardly any difference between H2 down to SFW1. Boats from WA to east coast ports will to a degree cause a ceiling on prices. Looking at some of the numbers into up country domestic homes in NSW there is still a little room to the upside, however traders and consumers are not jumping too much at present which says to me there is either one to three months of cover or they have stock up their sleeves to shift before lifting prices.
Barley continues to remain steady on face value with most Riverina and South West Slopes larger consumer points pricing at around $390-405/MT delivered January/February. However, for loads here and there you would possibly be able to get a $400/MT exfarm dependent on location. Barley, as mentioned in the past is trying ever so hard to keep its spread to wheat and looks to stay this way. Like wheat, the upside may be limited as to how much it costs to execute from WA.
Canola has softened on the Port Kembla track market to around $620-625/MT over the past week while delivered markets remain quite steady. For now, it looks like crushers will try and get through the stock they have without paying up too much, so it’s difficult to see upside in the short term.
Prices as at 17th January
* View of current market pricing. Does not represent current Agfarm bids.