Matthew Noonan, Agfarm Account Manager SNSW
For much of Southern NSW conditions remained mild this week with some warmer days and cool clear nights, so worries still remain on the frost front for now. There has been no rain to speak of which continues to fuel the current spate of washout enquiries and a rising old and new crop market. There is a change predicted mid to late next week, so fingers crossed this eventuates. Markets continue to be thinly traded on a grower front, with old crop supplies dwindling down or being held for a hedge into 2019.
The old crop wheat market rose this week with Griffith market zone now up at around $450-452/MT delivered October, which is in line with new crop bids. This week saw continued enquiries on new crop washouts due to conditions, however not many are pulling the trigger just yet as numbers are very high with frost talk coming from all corners of Australia. New crop Port Kembla track is being bid around $490/MT with no liquidity. This is a result of the market marching higher and growers reluctant to forward contract until production becomes more certain.
Barley is scarce at present with small amounts of enquiry on the demand side but no liquidity on sell side. It’s expected this market will stay like this until we see some rain or new crop supply starts to hit the bin. Old crop values are still ranging in the $430-450/MT exfarm with spot loads above this in some cases. New crop is sitting around a $450-455/MT Port Kembla track at present, so a lot of sites are presenting $400+/MT site pricing levels which, if these levels remain, should create good selling opportunities come harvest.
Both old and new crop canola has finally gone on a run and is up 20+/MT week on week. Old crop pricing is around a $640-645/MT Port Kembla track which still hasn’t brought a lot of sellers to the table. The general consensus from growers in the area is there is more upside in this market. But like cereals, most NSW crushers will be looking far and wide to accumulate what they require for the coming 12 months and if it is cheaper to get from over 1,000km’s away they will do it. There has already been talk of boats coming from WA/SA to Newcastle to fill this demand. New crop levels are priced at around $660-665/MT Port Kembla track.
Prices as at 27th September