Before we jump into grain markets, I’d like to wish our Southern NSW readers a safe and happy Christmas, and a brighter 2020!
Weather wise we’ve seen no relent this week on summer’s harshness with multiple days above 40 degrees. This hot weather has seen a definite increase in activity from livestock producers chasing barley, mostly to cover their fodder needs over the next month. The hardest element at present is locating trucks to move the grain at short notice.
Wheat markets through NSW have cooled their jets a little with most of the prompt demand covered in now. Attention will quickly turn to Jan-Feb commitments, but markets remain at their best levels for a few months with Griffith market zone bid around $360-365/MT delivered Jan, while the Young market zone is edging towards $380/MT levels.
Barley, as mentioned, is starting to heat up price wise as livestock producers chase prompt loads to cover needs over the coming weeks. As we stand right now, with a continued lack of selling happening in any meaningful way, markets have risen a considerable amount over the past month with exfarm values now anywhere from $320/MT in the south to $350’s/MT in the very north of the Port Kembla zone. While this demand remains, prices should retain these levels but the first sign of the livestock producer demand waning it will start to come off.
Canola has also continued to defy any downside on the price front with Port Kembla now sitting around $665/MT track level which is some of the best pricing seen in years. Bigger crops in the Wimmera and Western Districts will be in the bin now and into the coming weeks, but the market doesn’t feel like seeing any downside pressure just yet.