Reid Seaby, Regional Manager WA
Harvest is pretty much over and pleasingly the crop in WA has come in better than most were expecting. Prior to harvest there were concerns that a late start, dry September and frost would hamper the ability for WA to have a good season, but it seems all the ‘talk’ was unjustified. WA has just produced more than 50% of Australia’s wheat crop for only the third time in history however it does seem highly unlikely CBH receivals will reach the magical 10MMT.
With the east coast struggling through a tough season and given the size of the crop here in the west, some grain is being shipped to QLD and NSW rather than going to traditional international markets. The rate at which grain was moving interstate did drop off during harvest but we have seen evidence of vessels starting to move east again now. Having said this, lower than expected volumes being transhipped combined with the bigger than expected crop should see WA ending stocks climb as we move into the new season.
Local markets have been relatively stable recently and should continue to be in the short term. More volatility may arise if concerns develop with the northern hemisphere production. Wheat was marginally softer this week with APW1 bids falling $4/MT to $381/MT FIS in Kwinana. Malt barley was unchanged but BFED pushed $5/MT higher to end at $315/MT FIS. The spread between GM and non-GM canola widened with CAN bids up $2/MT and CAG down $12/MT. New crop APW was off $7/MT to fall below $300/MT in the Kwinana port zone.
Prices as at 17th January 2019
* View of current market pricing. Does not represent current Agfarm bids.