We all know since about first week off nov 15 wheat prices have been trending lower with odd good spike pricing opportunity here and there.
Have a great friend who works for awb/cagill and there was a huge huge swing back to pooling last harvest sadly pool estimates have followed market down and seemingly a lot still unsold.
Alas those who pooled instead of cash are in a far worse position low price plus pool fees and charges etc.
Myself stored grain for later sale "my own pool" similar story prices lowered but its mostly all gone and will achieve prices comparable to harvest cash prices, saved on storage handling and freight but lost on interest and cash flow.
Guess here in oz we have more domestic opportunities and freight not so bad compared to you guys.
If traditional pool from 15 years ago was operating same scenario I would think, marketing power to me became a myth as globalization took over and black sea became such a huge exporter in late 80s and 90s. That when pooling started to fail.
If awb and cwb for that matter operated a cash selling option along side pooling they may still be in existence.
Harvest 2016 best cash prices available were were I think 286 port which came in late jan early feb many farmers jumped on it and priced 30% of there expected production that option just wasn't available under old awb/cwb.
ps I didn't get 286 but sold later at 276 still will be a healthy price comparatively.
Priced canola as well but alas not feed barley.
Hay oaten and barley is becoming a huge part of farmers enterprise prices around $240 per tonne if number one export quality, china has insatiable appetite for hay.
Other change in the higher yielding areas of Australia in lentils these areas produce 4 to 5 t/ha of wheat and barley well wheat and barley is becoming a break crop for lentils. Lentils at 2.5t ha is great money.
ive dabbled in lentils this year 250 acres expecting 1 t ha in our dry climate and also 300 acres chick pes as well again unknown quantity.
The flip side to all this is livestock sheep and cattle are at record never seen before returns so many are diversifying.
Sorry for the sunday morning novel guys felt like typing
Have a great friend who works for awb/cagill and there was a huge huge swing back to pooling last harvest sadly pool estimates have followed market down and seemingly a lot still unsold.
Alas those who pooled instead of cash are in a far worse position low price plus pool fees and charges etc.
Myself stored grain for later sale "my own pool" similar story prices lowered but its mostly all gone and will achieve prices comparable to harvest cash prices, saved on storage handling and freight but lost on interest and cash flow.
Guess here in oz we have more domestic opportunities and freight not so bad compared to you guys.
If traditional pool from 15 years ago was operating same scenario I would think, marketing power to me became a myth as globalization took over and black sea became such a huge exporter in late 80s and 90s. That when pooling started to fail.
If awb and cwb for that matter operated a cash selling option along side pooling they may still be in existence.
Harvest 2016 best cash prices available were were I think 286 port which came in late jan early feb many farmers jumped on it and priced 30% of there expected production that option just wasn't available under old awb/cwb.
ps I didn't get 286 but sold later at 276 still will be a healthy price comparatively.
Priced canola as well but alas not feed barley.
Hay oaten and barley is becoming a huge part of farmers enterprise prices around $240 per tonne if number one export quality, china has insatiable appetite for hay.
Other change in the higher yielding areas of Australia in lentils these areas produce 4 to 5 t/ha of wheat and barley well wheat and barley is becoming a break crop for lentils. Lentils at 2.5t ha is great money.
ive dabbled in lentils this year 250 acres expecting 1 t ha in our dry climate and also 300 acres chick pes as well again unknown quantity.
The flip side to all this is livestock sheep and cattle are at record never seen before returns so many are diversifying.
Sorry for the sunday morning novel guys felt like typing
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