VIC Market Update – 25/01/2019

James Ryssenbeek, Agfarm Regional Manager VIC

Everything is moving slowly this week with people, markets and plants being dominated by the continued heat.

The summer crops; corn (see left picture below near Echuca), cotton and rice are thriving in the conditions. The continued hot weather has allowed later sown crops to recover well. However, water prices continue to push higher with the Murrumbidgee offering in the range of ~$700/MG and Murray water offering at $540/MG. These values are creating issues for finishing crops and is also impacting 2019/20 irrigated winter cereal growers pre-watering and budget planning.

Fertiliser markets are starting to move. The general consensus is MAP/DAP are at low prices therefore good buying, however urea could have more to give so sales aren’t as strong. Chemical purchases haven’t come to the front yet, and summer spraying has basically stopped with the heat now.

Speaking with a small bale hay producer this morning (Friday) who said the market has slowed, a result of the quantity of hay around and buyers running low on cashflow. Pictured below (right) is a Teff crop east of Echuca. This was cut three days ago and hopefully bailed tonight (Friday). The target is 100 small bales per hectare.

Grain markets are stable. There continues to be good opportunities for exfarm/delivered end user business for those looking to move grain. The sales we’re seeing are mostly for immediate cashflow. Growers are otherwise holding for improving values as they watch the thermometer.

 

 

Prices as at 25th January

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

 
 
 
 

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