Global pressure weighs on grain markets
By Craig Ednie
26th February, 2024
Grain Growers have been alerted to lower pricing prospects in recent times as we continue to see wheat prices dip since the start of the year. This is in line with general pressures in the grain markets caused primarily because of a massive corn crop. This is has brought grower selling of wheat and barley to a crawl as the market for the current crop in the southern markets' plumbs to new lows. In northern markets, all attention has been focused on sorghum. It is not unusual to see price volatility through the northern hemisphere spring period of March, April, and May, given crops are susceptible to weather events and markets can react to forecasts.
In Australia, we have seen significant price differences between Australian port zones for the same grades. These price differences remain wider than pure execution costs in many cases. However, growers throughout all states can have an opportunity to impact the price of their grain by offering it for sale rather than accepting published bids or \private bids. This may be especially relevant for growers who are reaching points where they need cashflow for repayments on machinery and fertilisers. The bills never stop!
Canola continues to be the ugly duckling when marketing with growers, who continue to have optimism that pricing will reach $600 at site again. With this in mind, and values continuing to fall, the question will be ‘’how much impact does the softer price have on the year ahead and could we see growers reduce the area under production in their upcoming program?” Many are considering alternative options such as lentils as they have been a strong performer in larger areas. The current price for Lentils is currently $935/tonne which is not to be sneezed at.
On a more positive note, is the favourable weather forecast heading into the 2024 growing season, which is a contrast with this time last year when farmers were bracing for El Nino conditions. Now we potentially have a La Nina forecasted building on huge summer rains for most parts of the state and with that comes the potential of another promising season ahead. Though we have excellent subsoil moisture, abundant weed control has been needed creating more work and cost with chemicals. With a great beginning to the season and the bright outlook so far let’s hope 24/25 season can be as promising for everyone involved.
A peek at how 2024 kicked off

With a scorcher this week across northern NSW and Southern QLD, the possibility of yet another cyclone bringing rain to central Queensland, those famous words “Droughts and Flooding Rains”, never seem truer than the start we are having to 2024............
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Read MoreWheat quality holds up against widespread rain.

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........
Read MoreRain turns the tables on summer crop plantings.

One can only hope that after the big falls across the eastern cropping belt last week, that the BOM manages to get this week’s forecast right, and growers in Southern NSW and Victoria escape any significant additional rain..........
Read MoreRain welcome in the North with Sorghum set to be sown.

Storm conditions have provided welcome rainfall to areas of Southern Queensland and Northern New South Wales. With rainfall totals between 15-50mm in the last week and some areas receiving more than 100mm........
Read MoreHarvest progresses at record pace

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Read MoreWA Market Wrap

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Read MoreHarvest moves South

Queensland and Northern NSW have parked the headers and are done and dusted, while Central NSW is about 50% done. Southern NSW is seeing more headers in canola and barley paddocks, and we should start to see some activity in wheat paddocks sooner rather than later......
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Read MoreAn update on harvest

Harvest is rounding the home straight in Queensland and Northern New South Wales nearing 50-60%. Quality to date has been reflective of the seasonal conditions, with the lack of moisture contributing to grades milling around the centre of the quality chart, with ASW1/AUH2/APW1 the main grades being presented at bulk handling sites......
Read MoreDry weather hits sorghum production.

The weather in recent weeks has generally been favourable to most grain producing regions. Areas in the north have seen clear weather allowing harvest to progress at perhaps a pace faster than many would like.....
Read MoreHarvest activity increase sees prices decrease

Harvest has now kicked off in most of the country’s northern cropping regions and as header activity rapidly moves south it won’t be long before we’re well and truly underway across all zones. Queensland growers are now stripping wheat as canola is making its way into receival sites as far south as the NSW Sturt Highway....
Read MoreRain makes grain

Its fair to say that a rain in spring is worth its weight in gold and last week we saw this come to fruition with reports of 15mm to 100mm+ recorded. In some regions, the rain came too late to add yield, however this one event will certainly lead to small grain size and pinched grain being a lot less common occurrence than it might have been, as crops were beginning to run out of moisture.....
Read MoreGlobal Wheat Production Estimates Lowered With Drier Outlook

Looks like September was one for the record books with what might have been the warmest and driest since records began, not to mention Collingwood tying with Essendon and Carlton with 16 grand final wins on the last day of the month....
Read MoreHow Time flies

It seems like only yesterday that we were celebrating a Geelong premiership, but 12 months has flown by and its Grand Final week again. It also feels like we only just put last year’s harvest to bed, but in the blink of an eye we are back at it again....
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