Giles Ditchfield, Agfarm Account Manager Victoria
It’s been another very interesting week in the grain industry. Markets gained value early in the week, however with the rain that fell across a large part of Victoria, we saw some of these markets come off. ASW1 delivered Bendigo fell from $320/MT to $317/MT, while new crop Melbourne tack came back $3-4/MT. The rainfall varied with some areas in Central Vic and the north east receiving 20-35mm, the Western Districts picking up between 18-25mm and the Mallee around 4-9mm. On the back of this rainfall growers are feeling more positive about the season, with some even saying ‘this is the break’. It will be interesting to see how planted crops respond in the next few weeks. We’re hoping to get another front in the next week to 10 days which according to the mid-long term radar is forecast as a follow up. If this occurs and confidence in the new crop season grows, it will be interesting to see if more growers decide to commit some of their new crop position.
The wheat market hasn’t moved as much this week. We have seen SFW1 delivered Griffith currently being bid at $330/MT, however most bids have been around the $327/MT mark. SFW1 exfarm Mallee, Central Vic and Goulburn Valley is $305-308/MT while SFW1 into the Western Districts is $320/MT. The trade is continuing to bid up into positions they need to cover off, hence some moves have been bigger than others. New crop numbers are still being well bid on the track. We have seen ASW1 delivered Bendigo at $317/MT and APW1 MG at a $328/MT Melbourne track. Stocks continue to remain tight, however with the rainfall and more confidence in the new crop season, there has been more interest in letting old crop tonnes go.
Barley continues to be well bid. It feels as though the amount of barley left as carryover is very tight. Barley is continuing to be feed to livestock, and because of this, F1 delivered Melbourne/Geelong has moved to a $315-318/MT. The new crop barley numbers remain strong against current prices with F1 delivered Melbourne/Geelong being bid at $290/MT and F1 MG Melbourne track being bid at $288/MT.
The canola market has again remained steady over the past week. We are currently seeing canola sitting at $528/MT track, while new crop numbers have increased to a $554/MT Melbourne/Geelong track. Growers still feel as though there is an upside to the canola market and as a result, they are still happy to hold onto their canola and carry it.
Prices as at 31st May 2018