VIC Market Update – 28/09/2018

Giles Ditchfield, Agfarm Account Manager VIC

It’s been another very interesting week in the grain industry. The markets have continued to rally on the back of contract washouts and seasonal conditions. We are fast approaching the pivotal time where growers need to decide if they are going to grow grain through to head or cut for hay. Unfortunately for many areas throughout Victoria we continue to see frost, warm weather, high winds and below average rainfall.

The wheat market continues to gain momentum as we become more aware of production issues. It looks as though this is going to continue until we start to see grain hit the bin. Old crop tonnes continue to be offered up with trades occurring well over the published bids. Growers seem happy to remain at their offers and wait for the trade to move, and as a result we are seeing big offers against bids.

The barley market has been similar to wheat and has increased sharply week on week. We have seen more interest for old crop wheat than old crop barley and there has been more reports of livestock being put on crops that don’t have enough bulk to be bailed.

Canola is being cut for hay in large areas due to frost damage and lack of moisture. As the percentage of crop being cut increases, we have seen both the track and delivered numbers climb higher for both old and new crop. The production risk for the upcoming season far outweighs grower engagement on the forward market.

 

Pictured: Patchwork of paddocks flying over Victoria.

 

Prices as at 27th September

 

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