Hot and dry weather, and a pause in the arrival of vessels from Western Australia, have seen values for feedgrain lift in the past week as end-users bid up to book coverage for nearby delivery as yield outlooks slip for later-planted sorghum crops.
Bulk handlers GrainCorp and Viterra have now received around 5.6 million tonnes from the harvest which is now winding down in eastern Australia in all states bar Victoria, where rain delayed activity in the last fortnight of 2018.
Values for sorghum have eased in the northern market ahead of widespread rain forecast to fall from today, while in the south, volume traded has been minimal as growers continue to focus on getting their crops harvested and stored.
Grain receivals from the eastern Australian harvest to date have hit 3 million tonnes, with GrainCorp’s intake in eastern states now at 1Mt as of 3 December, and Viterra’s in South Australia at just under 2Mt as of 2 December, according to their latest weekly harvest reports.
Rainfed rice production is on the rise in the Northern Rivers of New South Wales, and is being milled at Slater Farms near Casino for sale in the domestic market.
Overall the feedgrains sector reported cautious trading this week as demand slowed and rain in the southern half of NSW further eased fodder supply. Barley priced itself back into feedlot rations in the short term in the hope of a better sorghum crop growing over summer.
An upgrade of rail infrastructure at Sydney’s Port Botany is being funded by Patrick and NSW Ports to lift the Patrick terminal’s annual capacity to 1m TEUs, and similar upgrades to the DP World and Hutchison terminals will follow.
Harvest to date in South Australia and its eastern neighbours has hit 2.3 million tonnes, with rain slowing progress in South Australia, where Viterra has now received 1.63Mt, compared with 672,000t in total received by GrainCorp in eastern states.
The Queensland and New South Wales is hoping recent rain will bolster prospects for the sorghum crop now being planted, which holds potential to price itself into feed rations from March onwards.
Bulk handlers GrainCorp and Viterra have received a total of 449,500 tonnes and 1.35 million tonnes of grain respectively in the harvest to date to take the total intake for mainland states outside Western Australia to 1.8Mt.