Feed grain update: Margins dictate shift to pulses

Luke Walker, Robinson Grain Trading, 03/05/2012

Luke Walker, Robinson Grain Trading, ToowoombaThis week there has been reports of excellent rain in some parts across Queensland and Northern NSW, which is ideal for growers who are about to start their sowing program and for those growers who have already dry sown. 

There is much debate on what commodity will be grown for the winter months with pulses, oil seeds and white grains fighting for acres, with gross margins dictating a change of acres away from wheat and barley.

New crop prices are currently trading at $230 for Dec/Jan APW wheat on the east coast port and feed barley at $195 port. 

Farmers are seeing better returns with chick peas trading at $535 delivered Darling Downs for November and canola at $560 east coast track.

We believe there will be a significant shift to chick pea acres in the north and canola in the south. An agronomist in Central Queensland has clients who are planting 90pc chick pea crops.

Feed wheat has seen an increase in demand due to recent feedlot interest. 

The market is expecting lot feeders to start sourcing fresh supplies of feed wheat for the last half of the year. 

This combined with trade shorts has seen the wheat market spike $10 over the last couple of weeks. 
Darling Downs wheat delivered feedlot is currently trading at $210, barley at $196 and sorghum at $176, while cotton seed ex downs gin at $185. 

Liverpool Plains is trading feed wheat at $196 and barley lacking interest around $165, sorghum on the Liverpool plains is trading at $150 farm.

Riverina barley trading $170 and wheat at $175 delivered. Goulburn Valley feed wheat trading at $200 delivered, and barley delivered Melbourne $210.  

  • 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@robinsongrain.com.au or (07) 4659 0755 or twitter @lukergtgrain


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