Giles Ditchfield, Agfarm Account Manager SA & VIC
Just as harvest started to build momentum in the great state it was held up with a widespread rain event of 15-50mm across central and eastern SA. There doesn’t seem to be too much concern around the rain, and the general sentiment is it will have little to no impact on the quality of grain reaped. If, however a follow up rain comes through, this will start to spark some concern. Prior to the rain, it was a solid week of reaping with around 900,000MT being delivered into the Viterra system making it the largest week of harvest so far. Stack averages for canola have improved and are now sitting at around 43-44% oil. Barley is being reported as malt or feed, and nearly half of all the wheat harvested is hard wheat. It looks as though there is more rain on the back end of the eight-day BOM forecast. If this does eventuate, it could cause cause protein and screening issues and draw out harvest for a longer period of time.
The trade is purchasing tonnes at $222/MT track for F1, $236/MT track for ASW1 and $246/MT track for APW1. It would seem most are happy with these prices to cover positions and improve cashflow. There is a premium for malting barley and protein wheat on both the track and delivered markets. Into the mills, H1 delivered Adelaide is $310/MT, while H2 is trading at $270-276/MT depending on the delivery point. Most are reluctant to lock any high protein delivered positions away until the rain has passed, the headers start rolling again and they know what quality is like.
*Prices as at Thursday 16th November 2017