Matthew Noonan, Agfarm Account Manager SNSW
Harvesting in Southern NSW is all but done. A good week of sun has enabled crops to dry down from rains last week and most will finish prior to Christmas. With rains over the past four to six weeks, guys and gals are now out spraying to get on top of summer weeds and conserve moisture for next season.
Wheat has been quite solid week on week. There has been a few near-term shorts into the Griffith market zone with buyers looking to cover off the next two to four weeks demand while we get through holiday period. Griffith SFW1 has been pricing around $445-450/MT delivered January 2019 onwards. Grower selling is reasonably slow with system sales expected to be well over 50-60% sold. Onfarm stocks will likely start to emerge in the new year. As per the last few weeks, quality has continued to be really good with 70-80% of the 2018/19 season crop being H2. This is falling into miller’s hands and leaving the domestic feed markets short on the quality they require. APW1/H2 is starting to fuel feed markets and spreads from AGP1 – H2 dependent on location not being very large.
Barley is a tale of demand, or lack thereof. For the most part domestic barley consumers are reasonably covered for the next one to three months and likely to keep a good discount from wheat values. Currently that spread is at $40-45/MT under wheat into Griffith market zone. Delivered markets are $400/MT into Griffith market zone buyers call for now.
Canola markets post-harvest seem very subdued with similar pricing being seen for the last two weeks. As mentioned in previous reports if you’re still looking for upside in the market the wait will be on for when particular crushers require more length which may see pops in the market every now and again. However, at these pricing levels they are reluctant to push too high due to crush margins being very skinny and the potential to access WA/SA production.
Prices as at 20th December
* View of current market pricing. Does not represent current Agfarm bids.