WA Market Update – 18/04/2019

Reid Seaby, Regional Manager WA

On Friday of last week, GIWA released their first crop report for the 2019 season and the consistencies with what we have been sharing with you over the past month or so were evident. They suggested the intended canola plantings were going to increase 15% year on year but with the lack of rain to date, estimates have been pulled back to be similar to that of last year. Intended barley area is also expected to be similar to last season which highlights any concerns regarding marketing opportunities to China, Japan or South Korea are seemingly being outweighed by rotations and agronomics. GIWA is estimating a total of 8.3 million hectares will be planted in 2019 of which about 55% will be wheat, 20% will be barley, 15% canola and the balance made up of lupins, oats and pulse crops.

Seeding is yet to properly get underway as last weekend’s rain failed to produce anything of significance. There were a few thunderstorms in the north and east which dumped 20 – 40mm over some farms but the areas which did get rain were scarce. After last year, most growers are keen to wait for a break in order to get a knockdown and clean up some weed issues that have resulted from last year’s dry sowing.

Prices were lower again and the losses were across the board. Old crop APW wheat tumbled $11/MT in Kwinana, back to $303/MT FIS. Barley too was softer, but the drop wasn’t as significant with feed ending the week at $288/MT which is down only $2/MT from last week. Canola was unchanged but bids are weak and of no interest to growers. A positive move was however seen in new crop markets with APW1 hitting the magical $300/MT mark which is $20/MT higher than where it was valued seven days ago and $10/MT up from Tuesday. Although a lot of grower’s target sales around this level, it is unlikely to see much engagement given the weather and the time of year.

 

Prices as at 17th April 2019

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

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