VIC Market Update – 09/02/2018

Giles Ditchfield, Agfarm Account Manager VIC

Victorian markets have again rallied week on week due to both the futures and the Australian dollar. Another major factor influencing the prices is the shipping stem and buyers demands. We have seen the F1 delivered number into Melbourne increase to $265/MT. There is no rainfall on the 8-day BOM forecast, except for the potential of 5-10ml for areas in Central Victoria and in the North East. Growers are really just hoping for some cooler temperatures after this run of warm weather.

With these hot days, it has given farmers plenty of time to think about their grain marketing. The strong numbers on both delivered and system stock have seen tonnes come to the market. Feed wheat is currently trading at $235-245/MT onfarm throughout Central Victoria while protein wheat has been in strong demand with H1 trading at $313/MT into Melbourne and APW1 and ASW1 trading at $277/MT and $270/MT respectively. We have seen the Central market heat up with delivered Bendigo trading at $260/MT for Feb-March.

Throughout the Mallee and Western Districts buyers have had a keen interest on exfarm tonnes but are also happy to price up delivered as they look to cover their positions. The strong demand for barley is based on the export market, with a large number of vessels coming in through several companies in the trade. The malt spread to feed remains stagnant with $5-10/MT which is unchanged on last week. Westminster remains well bid with a +$30/MT spread to F1 which we have seen since January 9.

We have seen some positivity in the canola market with a $500/MT Geelong Terminal prices and a delivered Melbourne/Geelong of $505-$507/MT. The Australian Dollar has meant we have also seen a rise in the canola numbers at sites, with most buyers still paying the oil bonifications.

VIC pricing tables 201802094