WA Market Update – 28/09/2018

Reid Seaby, Agfarm Regional Manager WA

Growers have been assessing the extent of the damage caused by frosts over the past fortnight and are trying to gain a better understanding of the bearing it will have on final production. Although the total area impacted by frost is large, the severity varies greatly and it seems complete wipe-outs are scarce. The general consensus amongst the trade however is that the prolonged dryness is of greater concern and will have a bigger effect on yield. We haven’t seen any rain falls of significance in September and as a result, some paddocks are burning off and yield potential is diminishing. But we all know cereals are resilient and we are hopeful the rain forecast over the next eight days will provide some respite, assist with grain fill and see the crops through to harvest.

 
 
 
 
Given both the frost and lack of rain, growers have been reluctant to make too many more forward sales and are generally sitting on the sidelines until they have greater surety of yields. With this in mind and concerns of the WA crop going backwards, prices strengthened across the board this week. New crop APW1 in Kwinana was bid $3/MT higher at $373/MT and so too was malt barley at $395/MT FIS. Canola was the big mover however jumping $10-15/MT to hit $600/MT FIS in the Kwinana zone.
 

Prices as at 27th September

 

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