A mixed outlook for Australia’s sorghum production, and a domestic price which the drought has kept at well above export parity, are giving the trade plenty to think about as the sorghum harvest kicks into gear.
Growers and traders wishing to store or accumulate sorghum from the upcoming harvest will have access to Boolah Commodity Management sites as it moves into warehousing in northern New South Wales and Brisbane with an eye to bulk loading of vessels.
Rain in the past week across eastern Australia’s cropping areas not only halted the winter-crop harvest in late-maturing areas, prompting short-covering by end-users to ensure adequate supplies of wheat into January, but also proved a game-changer for southern Queensland’s sorghum outlook.
Grain received in the eastern Australian harvest by GrainCorp and Viterra now totals 4.79 million tonnes (Mt) following receivals into their systems which totalled 152,900 tonnes in Queensland, New South Wales and Victoria, and 391,071t in South Australia.
The area planted to cotton in central and southern New South Wales this summer is down an estimated 37 per cent on last year due to limited availability of affordable water, according to latest industry figures.
A drought-reduced durum crop in New South Wales and Queensland will produce enough grain to cover domestic semolina requirements, but will leave a minimal export surplus to trade into a world market were North American durum is dominating.
Receivals in the eastern Australian harvest have hit 4.2 million tonnes, according to the latest updates from bulk handlers GrainCorp and Viterra.
Drought conditions have returned in force across much of NSW, particularly in the west of the state, despite isolated rainfall throughout the past month, according to the New South Wales Department of Primary Industries (DPI) State Seasonal Update for November.
Riverina rice, wheat and corn farmers Glen and Julie Andreazza are the 2018 winners of the NSW Farmer of the Year Award.
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.