WA Market Update – 12/04/2019

Reid Seaby, Regional Manager WA

After a mostly dry week, a trough is forecast to develop on Saturday and will move inland during the day, possibly combining with a cold front that is expected to cross the coast Sunday. If this eventuates, we could expect to see rain through most of the northern and eastern WA wheatbelt over the weekend. It is unlikely to bring enough to provide a ‘break’ to the season and may even push too far northeast to benefit a large population of growers.

As we approach the middle of April the expectation of lower canola plantings remains given widespread early rains have been limited and there is a lack of good subsoil moisture. Some are looking to replace canola hectares with wheat given the uncertainty surrounding barley, but others will focus on the agronomic benefits and retain their barley rotations.

Moves in WA cash markets were reasonably significant over the last week. Wheat and canola were weaker while barley found some support. The lower quality wheat grades may continue to struggle given Black Sea supplies will be coming on to the market and soaking up the South East Asian demand. ASW1 in Kwinana fell away $11/MT after dropping $12/MT the week before and is now bid around $304/MT FIS. Barley bids went the other way with feed jumping $7/MT to $290/MT FIS in Kwinana and malt values climbing to $300/MT FIS.

2019/20 wheat price moves were modest but there is very little activity in new crop markets and that is likely to remain the case until we see a good break to the season.

 

 

Prices as at 11th April 2019

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

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