VIC Market Update – 31/05/2019

James Ryssenbeek, Agfarm Regional Manager VIC

1.5 minute read

A good week generally for grain growers in Victoria. Some nice rainfalls averaging 15mm through the whole state have helped complete final plantings and pushed earlier plantings along which are almost all up now. I’ve been driving this week through central Victoria to Berrigan, roadside crops of canola and cereals all appear to be well established. The farmers I met with are all spraying for insects at this moment driven by the warm weather and small plants – albeit it would be nice if the wind would calm down! Agfarm have noticed a spike in enquiry from sheep farmers this week, purchasing feed as dropping temps slow pasture growth.

Some good uplift in the markets this week for both old and new crop, particularly barley which continues to edge close to wheat figures. Grower enquiry on new crop is still pretty quiet, with last year still a little fresh in the memory for forward sales at this point. Cold weather and slow pasture growth is prompting hay demand, with low supplies holding prices firm. In the back office, the trade are trying to assess the impact of the North American corn crop where plantings are historically low, with more rainfall forecasted. Then there is the impact of Chinese pork production losses, that are relatively unknown due to unreliable government reporting. Chinese consumers are looking to alternative animal protein sources, putting Australian beef in the spot lights. Looking further afield Europe grain producers are generally having a pretty good go of it. Back home, talk is split between potential price rises as a result of poor rainfalls and plantings in Northern NSW and as yet no Autumn break in Western Australia. The next few weeks should see all these angles come together to shape up markets for the remainder of the year.

Pictured: Cereal crop poking its head through stubble near Balliang, VIC.

 

Prices as at 31st May

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

 

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