Feedgrain values in Victoria and southern New South Wales have jumped by up to $15 per tonne in the past week in response to frosts and dry weather which have depleted yield prospects in some areas.
Australia exported 1.35 million tonnes of wheat in July, up marginally from 1.34Mt shipped in June, according to the latest export figures from the Australian Bureau of Statistics.
The value of Australia’s farm production is forecast to remain relatively unchanged at $60 billion in 2018–19, well above the 10-year average of $55b, despite very dry conditions in some places, according to ABARES’ latest quarterly report released today.
Growers in Western Australia are advised to check their crops for frost damage following the weekend’s sub-zero events which have impacted cereal, canola and pulse crops so they can make informed choices about crop management.
Widespread and severe frosts centred on Western Australia’s Great Southern region have slashed at least one million tonnes (Mt) from the state’s expected winter crop, which was forecast by the Grain Industry Association of Western Australia (GIWA) on Friday at 16.3Mt.
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.
Feedgrain values in the past week dipped on rain in parts of the grainbelt, but have firmed in the past 24 hours in response to heavy frost in southeastern areas which may have limited yields in some crops, but cottonseed prices have eased as availability improved.
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.
Rain forecast for New South Wales over the weekend, and grain being shipped into both the state’s bulk grain ports has seen prices for cereals and pulses flatten in the past week.
Feedgrain scheduled to be shipped to Port Kembla from southern Australia is now being priced into the buoyant New South Wales market on a free-on-truck basis.