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.
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.
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.
Receivals in the eastern Australian harvest have hit 4.2 million tonnes, according to the latest updates from bulk handlers GrainCorp and Viterra.
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.
Taraba at Toobeah is for sale by expressions of interest, and will test values for irrigated and dryland cropping country in the Macintyre Valley west of Goondiwindi.
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.