VIC Market Update – 24/05/2019

James Ryssenbeek, Agfarm Regional Manager VIC

1.5 minute read

Sowing is coming to a close this week for most and rainfall is now welcome/needed. There has been a lot of weed and insect control over the state, but planting has been a smooth process with the warm weather following the rains a few weeks ago and germination is good.

Cotton crops are also coming off now. Yields are average, which is the effect of a hot December now apparent. High watering requirement and costs have taken the shine off the returns. Forward pricing has dropped significantly on the back of the China/USA trade discussions, with expectations that garment production may be impacted in China. Without significant rainfall in the catchments, access to water at profitable prices is looking difficult, and some are switching to irrigated winter cereals as a replacement for cotton next year.

Corn crops are nearly finished harvesting as well. Yields have been average to good for most, again you can see the impact of the extreme heat. Growers have welcomed the unexpected income from corn stubble hay which I’m told is liked by cattle and sheep alike.

Solid new crop wheat numbers are generating forward sales while old crop sales happen in “as required” spikes. The lack of short-term forecast rainfall is still a factor in the buyers/seller’s mind. Livestock producers are still reluctantly purchasing grain, hoping for grass to grow faster.

Pictured: Spraying in Thyra NSW

 

Prices as at 24th May

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

 

Follow us on social media