Australian grain markets recently have been slow and lacking liquidity – and are currently about as inspiring as being a Queensland Reds* supporter.
Both the Reds and Australian grain markets have suffered from very similar issues this year: there has been no support across the board; key play-makers have been quiet; participation levels have been low from all sectors; and keynote Asian players that have promised so much have been somewhat disappointing – and for the time-being, relegated to the bench.
All in all, these factors have created a particularly sluggish vibe, and currently it feels like things may stay the same. There’s no real engagement from buyers or sellers as they watch the local grain markets slide, and neither wants to participate in the market.
Growers have been reluctant to sell into this flat market, and have an optimistic outlook on grain prices, feeling that we’re at the bottom at these levels, and the markets potentially has a $30 rally in it. They’re just sit this cycle out, and plan to sell in the new financial year.
And as per normal, watch the weather and see what happens over the planting months for winter crop.
Sorghum harvest in the North is rolling along smoothly and we are now two-thirds of the way through harvest.
Yields have been excellent, averaging 6 tonnes/ha on the Darling Downs.
Sorghum has been struggling for support, although it seems to have found a floor at current levels, while we wait to see if export channels open up among our friends in Asia.
Sorghum seems cheap compared to wheat anyway, and should find some support into feedlots and poultry buyers at current levels.
Current markets on a delivered feedlot basis for March are trading at the following numbers, delivered Darling Downs: $216 sorghum delivered; Feed wheat trading at $258; Barley around $220.
Liverpool Plains is similar to the Downs with sorghum delivered $215, wheat $255 and barley at $226.
Southern NSW in Riverina area wheat delivered $245 and barley $210 Goulbourn Valley wheat $265 and Barley $225.
* For the benefit of our Victorian feedgrain followers, replace the words “Qld Reds” with your choice of either “St Kilda” or “Carlton.”
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 email@example.com or (07) 4659 0755 or twitter @lukergtgrain