VIC Market Update – 8/03/2019

James Ryssenbeek, Agfarm Regional Manager VIC

A cool change breezed through this week which was a nice change of events. Yes, rain would be better, but cooler at least for seven days is welcome!

It’s been a quiet week this week. Farm plans are being drawn up, but most haven’t started their agchem or fertiliser purchasing programs in any meaningful way. Fertiliser price movements are small. This is supported by sliding urea prices and a lack of backloading opportunities to Geelong with grain continuing to head north. The word is that trucks are heading to port empty at the moment. The lack of meaningful purchases so close to planting will put pressure on fertiliser supplier logistics to meet the market once it does move!

On the sowing front, talk has started that canola plantings will be down without significant rain events. Water prices in Vic have come off, dropping almost $5/ML per day for the last week, stimulating purchasing of pre-irrigation water. There is still a reasonable amount of uncertainty there however. Pasture planting is not far off for dairy, corn harvest is also just weeks away which is good, and cotton will be defoliated shortly in preparation for picking.

Old season grain markets have started to move this week. Weather driven demand is bringing the buyers back covering May requirements pushed along by low starting stocks and unfavourable rain forecasts in the coming months. This is predominately impacting wheat and barley markets. As mentioned last week, current cereal pricing does create export opportunities, which will likely create seller pricing opportunities when there isn’t much stock.

Picture: The wheels are turning in Natimuk Victoria.

 

Prices as at 7th March

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

 

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