WA Market Update – 08/02/2019

Reid Seaby, Regional Manager WA

This week CBH confirmed WA’s 2018 crop was the second biggest on record with 16.4MMT of grain received across the four port zones during the 2018-19 season. This figure fell just short of the 16.65MMT received in the 2016-17 season. The variance between port zones was disproportionate to the 2016 harvest with the Albany and Esperance port zones down 500KMT and 300KMT respectively, while Geraldton remained essentially unchanged. This year’s large crop did see the Kwinana zone receive 8MMT of grain, beating its previous record of 7.5MMT.

Markets on the whole remain lacklustre with negative overtones from barley weighing on wheat markets. Feed barley has fallen $27/MT to $290/MT from the $317/MT levels seen as recently as 24th January. Export demand continues to be hurt by the fact there doesn’t appear to be a resolution about China anytime soon. The government shut down in the US has limited USDA reporting recently, but we should start to get a little more clarity on global trends in the next couple of weeks. New crop wheat popped $10/MT this week to end at $295/MT FIS in Kwinana, but grower engagement remains non-existent.

Prices as at 7th February 2019

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

 

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