WA Market Wrap - October

By Jess Morris

And just like that another harvest is upon us with the year being one of the most challenging in living memory for the younger generations and we must remind ourselves to be very grateful to be involved in the farming industry that has been somewhat insulated from COVID-19 related issues that many other industries have certainly been hit hard with.

The finishing rains that many had been hoping for have been limited to the Western and Southern end of the Kwinana zone, the Western and Southern parts of Albany, and the Southern parts of the Esperance zone.

Below average falls for the season coupled with hot temperatures, lack of sub soil and lack of any significant finishing rains have moved crops ahead of normal pace and will result in a drop in crop potential. Many areas now in the Kwinana zone will be lucky to achieve average yield with some pockets falling well below average especially barley crops which have really struggled with a tough finish in the traditional high yielding areas. The Western parts of the Albany zone received some good late rains and has potential above average although tapers off as you move into the Lakes districts. Some of this rain also came through the Southern areas of the Esperance zone that will hopefully now achieve average yields.

Barley prices rebounded this month approximately $15/mt with BAR1 reaching a $260/mt in most zones on the back of some better than expected trades by the market for the Saudi tenders. Malt premiums are still negligible although with the declining crop and tough finish that may increase potential for high screenings and may result in some upside for malt grades over harvest.

Wheat has been on the up the past month moving about $25/mt in local cash prices allowing growers to sell more prior to harvest. The East Coast of Australia has had some recent favourable rain which has held up or added to production in many parts of South Australia, Victoria and New South Wales. This may put downward pressure on Western Australian prices as they move into harvest in a few weeks and the grower sells off the header.

Harvest time tends to throw curveballs no matter how much planning and preparation is undertaken with increased tourism in the region comes an increase in traffic and this has been evident over the past few months., Now is a timely reminder to be extra cautious with trucks on the road and many of these tourists not familiar with the roads in many wheatbelt regions.