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Home//News Hub // Wheat quality holds up against widespread rain.
  • News Hub

Wheat quality holds up against widespread rain.

By James Massina

13th December, 2023 

Like it or not, rainfall has been the order of the day for many parts of the country with winter crop still to harvest. Various locations through Southern New South Wales, Victoria and South Australia have received up to 200mls in the last couple of weeks. For those in the summer cropping regions where harvest was all but complete, the rainfall has been well received as the medium-term weather forecast remains average at best. Whilst not a plentiful as 2022, subsoil moisture levels through New South Wales are above average in a lot of areas which is positive for summer crop prospects.

The quality of the harvested grain posts these rain events has been variable depending on location and crop maturity. For a lot of New South Wales where there were still reasonable volumes to be harvested, the wheat quality has held up reasonably well. There is no doubt some shine was taken off the top of the crop however there was not an extensive downgrade of quality with a lot of the tonnes still making ASW or better. Understandably there has been the introduction of the weather damaged grades as some sites however these have seen relatively small volumes. With the bulk of the barley completed, the impact on quality from malt to feed has equally not had a significant impact on the total malt selection through New South Wales, nor Victoria.

Overseas markets have seen plenty of activity of late with numerous fundamental inputs dominating the newswires, both supply and demand driven. Certainly, China’s buying of US wheat had the futures market pushing strongly over recent weeks however this did not translate into similar gains in local markets with the January ASX contract trading a $10/mt range for the same period. Rainfall in parts of Europe and South America equally impacting oilseed markets. This has been providing some opportunities locally in an uninspiring canola market.

ABAREs released their summer crop forecast last week and despite being significantly down on the previous year, it is certainly looking better than it was in previous months. According to them, sorghum production is expected to be down by around 45% to a total of 1.5Mmt which is a factor of both area and yield. If realized, 1.5Mmt of production will still be below the five- and ten-year average for that commodity. In relative terms, it appears as though New South Wales is going to see the largest decline to planted area and subsequently production.

In contrast however, thanks to the recent rainfall, ABAREs is calling the 23/24 cotton crop at 4.1M bales of production which puts it above the 10-year average. Whilst this number is still significantly down on the previous two years’ production of 5.6M and 5.5M bales respectively, 4.1M is still a reasonable size crop with some industry sources already quoting it quite a bit higher than this. 

       


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