WA Market Update – 13/12/2018

Reid Seaby, Regional Manager WA

Another pretty strong week of harvest progress with tonnes received into CBH as of Tuesday climbing over the 12MMT. After a very slow start, the Albany zone is now in full swing with most growers completing their barley and canola and now harvesting wheat. Having said this, there is seemingly a fair bit of canola still standing along the Albany highway. Given the late break, soft October and weather interruptions, southern regions still have plenty to go so we are expecting harvest to go beyond Christmas and into the New Year.

GIWA released their latest production estimates last week and it illustrates tonnage projections have continued to rise as harvest progresses. The barley crop is 10% higher than last month’s estimate at 4.3MMT and wheat is about 7% higher around 9.7MMT. GIWA are now predicting all commodities to total around 17MMT. Assuming CBH received a further 3MMT from last Friday, total deliveries will be up around 13MMT by the end of the week. Geraldton will be wrapping up next week (if they haven’t already done so) whereas most of Kwinana and Esperance will be nearing completion a little later around Christmas.

A very positive week on the pricing front with all commodities pushing significantly higher. Wheat bids were between $9/MT and $24/MT higher than last week, with APW1 now sitting at $375/MT FIS in the Kwinana port zone. The trade is clearly chasing higher quality grades with spreads to lower grades widening. Barley also jumped this week with feed ending at $315/MT FIS, $15/MT higher than 7 days ago. Canola markets remain quite subdued but the higher move will be viewed positively.



Prices as at 13th December 2018

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

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