SNSW Market Update 22/02/2019

Matthew Noonan, Agfarm Account Manager

The week started off with a big dust storm in Southern NSW. The reason they’re coming in thick and fast is obviously the drought conditions throughout most of NSW. Although, driving around the last week there is more paddocks worked up than a month ago. There have been a few storms around, but not much rain. As for the forecast, the tropical event off the south east QLD coast doesn’t look as though it will push into the southern QLD and NSW grain growing regions. Markets have continued to slide the past week with international values adding to the grind.

With sorghum making its way from Northern NSW into the Griffith region there has been some pressure on NSW wheat markets, which are off around $15-20/MT in the past four to five weeks. Currently Griffith is pricing at around $400-418/MT dependent on buyer. Most buyers are either holding some length or can source from cheaper origins (SA/WA) compared to Southern NSW. If not a seller for now, your next window of opportunity may be late March into April, but tread carefully as any large uniform break in the season to allow healthy NSW planting conditions may put some short-term pressure on markets.

Barley continues to be a slow and steady event. The China probe has put a lot of pressure on markets Australia wide, and with a large crop in WA, it seems there is enough to cover shortages on the east coast throughout the year. If anything, barley is probably too large a spread to wheat and should have found its way into the ration a bit more by now. This would cause an uplift in demand, but it doesn’t seem to have happened as yet. Trade offers of barley into opportunistic NSW feed markets are around $10-15/MT under where growers with barley are actually sellers. So, if you’re holding out for a few more dollars, the demand needs to increase and stock coming from alternate sources needs to get tight.

Canola markets have suffered a cruel decline from international moves. The market is around $10/MT off but are still relatively good historically.

 
Photo: Irrigated cotton near Griffith NSW.


 

Prices as at 21st February

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

 

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