Sam Davidson, Agfarm Account Manager VIC
Victoria was hot this week, like really hot; the kind of hot that makes buyers ignore a selloff in offshore wheat futures and pay over the public bid in an effort to increase low seller liquidity. This week we saw growers offering parcels to the market with mild reluctance at anywhere from $3-6/MT above the public bid and buyers apprehensively rising to the offer. Cash market bids gained anywhere from $2-5/MT across all port zones with buyer interest apparent across all grades. The spread of feed grade wheat to APW1 continued to narrow with ASW1 bid at evens to APW1 in the delivered markets and system stock traded anywhere from a -$1/-$1.50 spread.
Domestic markets remain an offer dominated market with buyers actively seeking any offer for exfarm or delivered buyer for April-May. We saw at least a $6/MT gain for SFW1/SFWR bids delivered into the Western Districts, as buyers look to preserve their system stock opting to purchase from the grower where they can.
Barley markets finished this week relatively stronger despite a slow and sleepy start to the week. System stock bids increased by $3-4/MT across the Melbourne, Geelong and Portland zones. However, seller engagement on feed barley remains somewhat subdued with growers happy to sell bits and pieces into the market but nothing substantial. Domestic market feed barley also remained well bid with a $4/MT increase week on week. However, this remains an offer orientated market with buyers actively engaging offers for unsold parcels.
The canola market continues to be dominated by domestic buyers. Increasingly disappointing export data failed to show any exports on the books for April or May leaving cash markets venerable to domestic crush demand. Port zone bids are $1-3/MT weaker week on week however, losses from offshore futures markets are not playing a role in our cash markets today. This supports the argument that Australian canola traders are struggling to price into traditional export destinations.
Prices as at 13th April 2018