James Ryssenbeek, Agfarm Regional Manager VIC
And finally, a bit of rain this week! Good news for most croppers and livestock businesses. There are a lot of crops that will benefit from this, and for others it will mean some stock feed in time. A farmer in Deniliquin reported they had 30mm fall on the property; a welcome free pass for their last irrigation. The rainfall doesn’t seem to be impacting hay producers too much but cutting has slowed or stopped in many areas with everyone keen to see what next week brings.
Sales strategies are a hot topic at the moment, a common one being to sell and cover your debts then retain the rest to see what the market does in the first half of 2019. We have seen some very attractive seed numbers being floated for all commodities. For those with water, reports are sorghum and corn seed are getting harder to source. A lot of mix croppers are looking to these crops for their own feed security as well as supplying the feed market.
The rain is helping to fill grain heads and has resulted in more enquiry about old and new crop tonnes as confidence in the season increases. Wheat continues to be well bid into Griffith with SFW1 currently trading at $458/MT for Oct/Nov. As we get closer to harvest the question is, will prices reduce under harvest pressure or will they continue to be well supported. New crop APW1 and F1 continue to be well bid with the malt spreads above $30/MT. There is still a well-priced market for old crop parcels, however as harvest fast approaches, we have seen some buyers only keen to own new season tonnes. Canola markets have followed the same trend as wheat and barley with old crop trading well above $600/MT at the local silo.
More rain is forecast for next week. These falls could result in more grain being grown through rather than being cut for hay.
Prices as at 11th October
* View of current market pricing. Does not represent current Agfarm bids.