Matthew Noonan, Agfarm Account Manager SNSW
The last week has seen the end of January come and go with some track/system sales towards the end of the month on mostly wheat with some barley and canola. There has also been some continued interest in exfarm and delivered grain for the next two months before sowing starts. Overall, markets were pretty much unchanged with a slight weakening of system wheat coming towards the end of this week. Delivered markets into Southern NSW going north remain firm.
For wheat, the focus late last week and early this week was track sales before February warehousing kicked in. Mostly APW1/H2/APH2/APH1 grades were being sold, with H2 values between $308-310/MT PKE track and APW1 $292/MT PKE track as a minimum. There were also some large ASW1 numbers in certain sites close to consumers of $280-284/MT PKE track. APH1 sales ranged between $333-340/MT PKE Track. As for onfarm grain, there is still a more targeted approach towards barley onfarm compared to wheat, however it has caught up with its pricing now sitting level with feed barley. We are still seeing mid $250’s/MT into Hanwood and $265-270/MT Young region for Mar/Apr/May delivery. Newcastle and Liverpool plains markets continue to hold steady around $295/MT.
At the start of the week, barley still felt like it had a little softer tone to its markets with local feedlot prices remaining steady at around the mid $250/MT levels, while Bathurst/Blayney region was still pricing in the high $260’s/MT delivered. However, we are seeing some renewed interest from the northern regions of NSW and QLD creep a little further south. Pricing Western Riverina barley at the end of the week seemed like a $250/MT exfarm Feb/Mar is possible, whereas at the start of the week it was nowhere near it. Most growers are not keen to push deliveries too far into April in case we get an early break and sowing starts.
There has been a small rebound in canola pricing over the last three to five trading days, hopefully showing we have hit the bottom of the price cycle. Anyone holding canola will likely be looking for around $490-500/MT site. Anything is possible, but most international factors point towards this being unlikely.