VIC Market Update – 07/12/2018

James Ryssenbeek, Agfarm Regional Manager VIC

Harvest continues albeit at a frustrating pace with moisture continuing to stall real progress. Harvest completeness varies enormously with clients near Brim nearly finished, and others at Murtoa only just starting canola! As an estimate the state is 60% through. This week of warm weather should allow many to finish or progress significantly.

Quality remains a positive story in Victoria. Good H1 and H2 milling grades are common, test weights are strong and screenings are low. There is also a lot of malt barley being harvested. Quantity however isn’t as predicable with a grower in Nhill reporting 300kg to 2MT/ha across paddocks. Frost and lack of moisture are the most common reasons given. This variability is cited by growers as a key reason why they aren’t sellers at the moment, choosing to wait to harvest is finished before making decisions. The perception of pricing upside in the near term ~3 months is another key reason for restricted selling. Fueling some of that speculation would be barley prices which fell away strongly following China’s anti-dumping claims but have now recovered.

In markets this week new season pricing has been stable week on week, with only slight gains in canola. Old season cereals fell away slightly, $14/MT on APW. Canola however strengthened marginally to $590/MT, up $7/MT on last week.

Prices as at 06th December

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


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