Grain Market comments my patch

Commodity Marketing


Grain Market comments my patch

Jun 14, 2019 | 16:43 1 RAIN in the past week over much of southern Australia has further improved production prospects for its winter crop and put downward pressure on wheat and barley prices, but grain in northern New South Wales has traded flat to higher as concerns about dry conditions continue.

Dimboola has had 41mm of rain in the past week which will consolidate yield prospects for established crops and assist germination of others.

In southern markets, current-crop and new-crop prices have fallen $5-$10 per tonne.

CloudBreak director Ed Scamps said while some pockets of South Australia could do with more rain, yield prospects in many districts had improved considerably, and inspired confidence to forward sell a limited amount of new-crop.

“A lot of the Mallee got 15-18 millimetres which it really needed, and parts of the Yorke Peninsula got 40mm plus.”

In the prompt market, barley delivered into the Adelaide zone is trading at $320-$325/t, down from $340-$345/t late last month, while wheat is trading around $340-$345/t, down roughly $10-$15/t from its most recent highs.

In the new-crop Port Adelaide market, multigrade wheat in the bulk-handling system is trading at around $300/t, roughly $20/t below its levels in late May when excessive rain was generating maximum concern about US summer crops, and new-crop barley is trading at around $250/t.

“The market’s been torn between what’s going on in the US, and the reasonable start for us in South Australia.

“In new-crop, growers have now got more confidence about doing some forward selling.”

Mr Scamps said some growers who forward sold at $300/t this time last year missed out on the rally created by the NSW drought, which has seen hundreds of thousands of tonnes of South Australian grain supply NSW’s milling and feed markets.

“South Australian growers have got an eye on the NSW market.

“A lot will depend on NSW and how their season pans out.” Reply With Quote
Jun 14, 2019 | 17:26 2 Thanks for the update Malle.
We had rain forecast so I got worried and sold my old crop wheat yesterday. Today the rain forecast went away and wheat price jump up .25 cents! Just my luck. Reply With Quote
Jun 14, 2019 | 17:40 3 Hope you have greener pastures for your livestock?

Big relief when you see it can rain.

It always rains, but sometimes you have to wait to long. Reply With Quote