Deliveries into CBH Group’s Gairdner site kicked off receivals for the current harvest in the Albany Zone. Photo: CBH Group

WESTERN Australia’s major bulk handler CBH Group has received 2.035 million tonnes (Mt) of grain in the harvest to November 7 following deliveries of 1.423Mt in the past week, it said in its first Harvest Report for the current season.

Grain has now been received across all five of its operating zones, and the majority of sites are expected to open in the next few weeks.

CBH Group chief operations officer Mick Daw said it had been a relatively early but slow start to harvest, with receivals picking up significantly last week.

“While recent rainfall events slowed most growers down, we have started to see the pace of deliveries ramp back up,” Mr Daw said.

“All commodities are now in the system, with nearly half of our receivals made up of canola.

“While harvest is still in its early stages, grower feedback has indicated yields are slightly higher than initially expected in some zones, while others have been impacted by weather events”.

“Grain quality is generally looking really good for canola and barley, although some zones that were frost-affected have light-weight grain.”

Table 1: CBH Operations receivals to November 7, 2021.

Canola, barley sold from header

In WA, CBH Group’s market commentary said grower selling straight off the header pricing has been focused predominantly on canola and barley.

Canola prices in Kwinana continued to remain strong with values around A$1000/t free in store (FIS) Kwinana for the majority of the week as the trade covered its early export positions.

On wheat, international market interest continued, with South-east Asian flour millers looking for opportunities to cover their first quarter 2022 requirements.

In addition, concern over heavy rainfall across eastern Australia and some parts of South and Western Australia has the market guessing on the future milling-wheat quality, and the availability of quality malting barley.

This saw premiums for APW over ASW wheat extend to $25-30/t as the trade looked to cover its APW and AH requirements for the milling market.

APW1 prices increased more than $10/t on the back of these concerns and hit $390/t FIS Kwinana.

Feed buyers will wait and see what damage the rain causes and will likely remain out of the market until there is a clearer picture on the availability of feed wheat.

International feed barley markets remain sporadic with demand centered on Middle East and select South-east Asian feed buyers.

However, Australian barley is very competitive against alternative origins, and has enticed buyers to Australian origin when they are in the market.

Feed barley prices at $300-$305/t FIS Kwinana have attracted some grower selling.

Strong export demand has seen the Australian shipping program, continue to be aggressively sold, with a large part of the stem now committed until February-March.

This has surprised some international buyers who have been caught short with limited opportunities in the first quarter of 2022.

Bulk ocean freight rates have been very strong over the past 12 months, but have fallen by 10 per cent in the past few weeks as market sentiment for economic growth in China wanes.

Following is a summary of activity in each zone:

Geraldton

Canola deliveries in the Geraldton Zone to November 7 have hit the 55-per-cent mark of the total estimated receivals, while barley is at 40pc, lupins 20pc and wheat 15pc.

All sites in the zone except for Latham and Marchagee are open, and they will open upon requests from growers.

Growers are reporting well-above expected yields for all grains, especially barley and wheat.

Kwinana North

Following good harvesting conditions over most of the past week, deliveries in the Kwinana North Zone have picked, and most sites are open.

Most of the grain received so far has been canola and barley, with only small amounts of oats, lupins and wheat.

Canola quality is very good and barley is also generally good, although some areas of the zone that were frost-affected have light-weight grain.

​Kwinana South

Deliveries to sites in the northern part of the Kwinana South zone have picked up in the past week to reflect good harvesting conditions, but growers in the southern part of the zone are still a week or two away from getting going in earnest.

Most sites in the zone are now open, with the remainder to open this next week.

Most of the grain received so far is canola and barley with small amounts of oats, lupins and wheat, with canola and barley quality is looking very good at this stage with yields slightly higher than initially expected.

Albany

Most crops in this zone are only just ready to harvest, and receivals have mainly been in the Lake Grace and Jerramungup areas.

All areas in the zone have sites which are open except for Area 16 which is planning to start opening sites this week.

Most of the grain deliveried to date has been canola, with some feed barley also, and small tonnages of oats in the northern part of the zone.

Canola quality has been good but only small tonnages received to date.

Esperance

Harvest took off last week in the Esperance Zone, and all sites are now open.

Harvest activity to date has been sporadic, with a series of fronts, high winds and hail impacting deliveries.

In pockets throughout the zone, yield has been affected by these weather events, mainly in canola. When the weather has been favourable, growers are getting good tonnages through the sites.

Grain quality has been varied over the zone, with canola generally good.

Barley yields have been very good, but most deliveries have gone into feed segregations.

Wheat tonnages have been low so far, with protein variable.

Source: CBH Group