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Feed grain update: “It was bloody hot and uncomfortable out there”

by Luke Walker, Alliance Grains, Toowoomba, 03 March 2017

Australian domestic grain markets continue to climb as farmers and sellers sit out from markets waiting for a reprieve in the weather.

February was a shocker with record breaking heat waves and extremely dry conditions and grain markets surged on the back of this.

Matt Renshaw IndiaAs the Australian cricket player Matt Renshaw said in India the other day “it was bloody hot and uncomfortable out there”.

Markets will continue to firm until we see a formidable rain event forecast and some bright colours on the ten day outlook.

Sorghum harvest is 70pc through in Queensland, and the harvest has been a mixed bag.

The hot dry finish certainly hasn’t helped the sorghum crop with a large percentage been downgraded due to low-test weights and higher screenings, growers are also reporting poor yields.

The Liverpool Plains sorghum crop is just kicking off harvest and all reports are suggesting that the crop is in good condition on the southern Plains, although there are some early reports of sorghum 2 quality in the Narrabri area.

Brisbane track prices are trading in the $265 range, up over $30 since the start of February. Newcastle track markets are trading $25 under Brisbane, although traders will be watching quality closely as grain is delivered into local depots.

Generally the heat has affected all crops grown over the summer including cotton, mung beans and corn, with yield and quality losses evident. Some crops have been ploughed back in before harvest.

Dryland cotton farmers are reporting a reduction in yields with bales per hectare forecast back from 4 bales per Hectare to 2.5 bales per hectare.

April/May cottonseed is trading $430 delivered Downs this week. Old crop seed traded up over $500 delivered Downs last week.

Feed Wheat and barley have also been in demand with growers happy to sit with their silo full from a bumper harvest and watch the markets rally.

Although we harvested over 30 million tonnes of wheat in Australia a few months back, growers don’t seem to fazed to commit until they see decent planting rain for new crop in April /May.

Wheat into Darling Downs Feedlots is trading around $245 delivered March this week and demand from buyers seems to be short term, as buyers also watch the weather forecast in anticipation for planting rains and a softening in markets.

Barley markets in the same boat and continues to trade at $20 under wheat, reports barley has traded $224 delivered Downs for March.

Current market

Current markets on a delivered feedlot basis for March 17 are trading at the following numbers, delivered Darling Downs $248 sorghum delivered; Feed wheat trading at $246; Barley $224. New crop wheat delivered Downs January 2018 has buyers at $250

Liverpool Plains is steady with sorghum looking for local buyers delivered $212 wheat $215 and barley $190. Delivered Newcastle wheat trading $230 and Tamworth $210.

Southern NSW in Riverina area wheat delivered $200 and Barley $180, Victorian Goulbourn Valley wheat prices has held values pretty well at $200 and Barley $175.

 

  • Prices quoted in this column are of an indicative nature only to illustrate trends and do not represent a definitive buy or sell price at a given point in time. For specific prices for your region contact the author at luke@alliancegrains.com.au or 0427 372 793 or twitter @lukewalker711

 



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