Reid Seaby, Agfarm Regional Manager WA
This week GIWA released their 2017 crop report which pegged final production at 14.275MMT for all grains, far exceeding the 9MMT which they were forecasting back in July of last year. The marked improvement was obviously due to the state’s wheat crop; down 25% from the record in 2016 which was mainly due to the poor season experienced in the north and east of WA. Barley and canola production was also lower, but decrease wasn’t as significant due to these commodities being predominantly grown in the southern part of the state.
WA values were again stronger this week than last week, thanks partially to the firmer tone in US markets. The recent ‘rally’ has seen a lot of growers who are holding grain come back to the marketing table in search for opportunities to sell their remaining tonnes. Kwinana APW1 was $1/MT higher at $281/MT FIS, H2 up $3/MT at $293/MT and ASW was up $2/MT at $264/MT. Feed barley was up $3/MT at $280/MT FIS. Canola bids were also up in the Kwinana zone. As expected, wheat spreads have narrowed, with H2 back around $12/MT over APW1 which roughly halved since the $25/MT spreads that were seen during harvest.
Prices as at 16th Feb 2018