VIC Market Update – 21/12/201

James Ryssenbeek, Agfarm Regional Manager VIC

As we wrap up 2018, we thought harvest would be done by now, but we continue to plug away! I’ve spoken with a lot of growers this week with most stating they’ve finished, but for those still going the process is frustrating as rain and high moisture delays continue. We are also starting to see shot grain in unharvested crops. Spouting grain is also causing anxiety for bailing straw.

Good news about the weather. Massive rainfalls have replenished subsoil moistures, underwriting some 2019/20 production in areas. There has been a lot of jokes about summer rainfalls replacing in crop rainfalls, with last summers’ rainfalls making the crop more than in season rainfall. One small negative, rains have damaged fragile early summer pasture for livestock with mix croppers reverting back to feeding until pastures recover.

Grain marketing remains a complex business. Growers are sensing upside in the markets, particularly for barley and malt until mid-year, however cashflow management is high on the list. “Great prices, but not a lot to sell.” There are some good numbers offered for Jan/March delivery, but can you wait that long for your money? Sharp payment timeframes have been very well received and growers are taking full advantage of the flexibility to make snap cashflow decisions. With that being said, domestic markets (piggeries, dairy, feed mills) frequently outshine cash boards but payment terms are generally 30 days.

This week there have been some good selling opportunities day on day for those who check the boards frequently. Week on week new season barley continues to appreciate up $13/MT, while wheat and canola remain stable.

Pictured Below is a sorghum and emerging corn crop near Swan Hill. Humid and wet conditions are perfect for both these crops!.

 

Prices as at 20th December

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

 
 
 
 

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