SNSW Market Update 25/01/2019

Matthew Noonan, Agfarm Account Manager SNSW

Not much to report weather wise through Southern NSW, as it has been much of the same, possibly 1-2oC cooler than last week. Summer crops are enjoying the long blue-sky days but are sucking the water up and cash with water prices only heading one way. The temporary water allocation market in the MIA is currently at around $650-700/ML with a spread of around $200/ML between most buyers/sellers. The next fortnight looks to cool down slightly with some days in mid to low 30oC.

Wheat remains very steady with similar ranges over the last week. Griffith and Young market zones have been pricing around $435-445/MT delivered January/March. These two destinations are about the only destinations grain is heading with Liverpool Plains not at enough of a premium to cover freight spread and the Goulburn Valley being serviced by the up country VIC growers. The next one to three months should see much of the same unless a we see a major shift in dynamics from other regions. On a future outlook, pricing for Port Kembla track APW1 multigrades have risen around $10-15/MT over the last week with it now pricing around $350-355/MT Port Kembla track, so most sites would be looking at over $300/MT for APW1.

The spread for barley to wheat remains steady with most prices unchanged week on week. Western and eastern Riverina homes remain range bound at around $390-400/MT delivered January/February, however as per previous reports smalls would be moving for around the same levels Exfarm. The hope for barley is the grazier comes back to market in a similar fashion to mid to late 2018 when this was the major driver of market pricing.

Canola is much of the same week on week. Delivered markets have either remained at similar levels to last week or are slightly softer. Site prices are ranging from $575-585/MT and is all about the execution to domestic crushers.



Prices as at 24th January

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


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