Traders are bidding up big at South Australian sites on the national rail network to secure grain for end-users in inland New South Wales, where the drought-reduced harvest is tearing south at a rapid rate.
The majority of New South Wales remains in drought despite average to above average rainfall over the past month, according to the NSW Department of Primary Industries (DPI) State Seasonal Update for October.
Harvest is rolling south through New South Wales, but its pressure on prices is yet to be seen, while on sorghum, a heatwave drove up prices based on uncertain prospects for the crop now being planted.
Queensland Cotton and Southern Cotton are jointly proposing to build the fifth gin in southern New South Wales, where bright longer-term prospects for the industry are seen, despite limited availability of irrigation water for the upcoming growing season.
Groundwork in the lead-up to last summer and good prices have made cotton a viable option for Lachlan Danckert on his farm at Deniliquin in southern New South Wales.
Australia’s total winter-crop production is forecast to drop 12 per cent nationally to 33.2 million tonnes (Mt), with production declines forecast in all eastern states, according to ABARES’ latest periodic Australian crop report.
Rain in coming weeks is set to spark a mass planting of sorghum in northern NSW and southern Queensland, but growers are being warned not to plant without sufficient subsoil moisture in this early part of the summer-cropping window.
Prospective investors in the Temora-based BFB cropping aggregation have until the end of September to express their interest in the entity as it prepares to expand its footprint from its current 48,753 hectares.
A much-anticipated rainfall event has halted a slide in yield prospects for some winter crops in northern New South Wales and Queensland, and clipped the premium from the drought feed market as traders shore up positions.
Drought in northern New South Wales will limit the state’s ability to export durum, but South Australia can look forward to an exportable surplus if spring growing conditions are kind.