VIC Market Update – 05/10/2018

Giles Ditchfield, Agfarm Account Manager VIC

We have continued to experience warm conditions this week, frosts in some parts of the state and windy days – all of which we don’t want at this time of the year. Fortunately for parts of the state this looks like it could change next week as rain is forecast. This has put a stop to many growers cutting for hay to see how much rain they get out of the front. If areas receive 10-15mm, that will be enough to see grain heads fill to their potential during this critical time.

The total Victorian crop forecast continues to be reduced and therefore we continue to see very strong grain prices for both old and new crop tonnes. Wheat into the Griffith market zone continues to draw large amounts of tonnes away from Victoria. SFW1 del Griffith is currently at $455/MT while new crop delivered in January is $460/MT. It looks as though prices into these markets will remain strong or continue to rise as production issues and supply concerns continue to come to light. Barley has again followed the wheat trend on new crop and has risen this week. The old crop canola market has increased dramatically in the last week. When the price started to rise, many stated they would sell at $600/MT but we’re yet to see much liquidity in this market with target revisions matching seasonal conditions.

Growers continue to hold old stock until they are sure of new crop production, as many feel they may need it for seed stock next season if they end up cutting for hay this season.

 

Pictured: Canola being cut for hay near Devinsh Victoria

 

Prices as at 4th October

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

 

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