Barley price slips as field bins begin to overflow
A shortage of trucks, some rain and lower international grain supplies have combined to influence prices. Only one commodity is showing improving values this week.
THE harvest pace is picking up and brokers are seeing good grower engagement at current prices.
But rain has made growers more cautious in selling grain and a windy start to the week has many questioning crop stability and head shattering.
Prices for all cereals and pulses are steady to lower this week but canola prices are showing strength, lifting around $4 a tonne to $609 delivered to Geelong or Melbourne ports.
Australian Standard White wheat for prompt delivery has slipped $10 a tonne to $330 delivered end users in Melbourne but remains at a $26 a tonne premium to the January delivered price.
As the first cereal grain to be harvested, BAR1 grade barley is $3 a tonne lower.
According to brokers, many field bins are full, and prices would have fallen more had there been full access to trucks to match the willing sellers.
Exporters are paying premiums for barley delivered directly to port with $235 a tonne posted at Geelong for BAR1 barley.
Milling oats prices have continued their fall from the drought-inspired highs of $520 a tonne to $250 delivered to Melbourne.
This year milling oats had averaged a $100 a tonne premium to ASW wheat and new crop now sits at an $80 a tonne discount.
Consumers are out chasing supplies and flour millers and maltsters are included in the highest bids at sites.
Domestic stockfeed millers have been encouraged by the easing of prices following the October rally.
The positive margins over feed costs for dairy farmers are creating a strong incentive to maximise the energy intake for milking cows.
Some Victorian herds are currently feeding between 2 to 3kg of grain per cow per day which requires additional protein in many dairy diets.
Dry weather for soyabean planting in Brazil and the lowest stocks to use ratio for global soyabean for eight years have seen a $38 a tonne surge in Chicago soyabean futures over the past fortnight.
Canola prices in Victoria have spiked $19 a tonne in the same period.
Estimates put the Victorian crop at more than 800,000 tonnes this season, a 23 per cent lift from last year.
The boost in canola production in eastern Australia and reduction in feed demand has seen large volumes of canola meal available to buyers.
While canola meal was selling for over $550 a tonne delivered southwest Victorian farm last April, new crop has sold at levels from $350 -$390 a tonne.
MORE
ASIA PRESENTS OPPORTUNITIES FOR AUSTRALIAN WHOLE GRAINS
WHEAT COMPETITIVE IN OTHER MARKETS AMID CHINA BAN RUMOURS
HARVEST 2020 EXPECTED TO BEGIN SOON WITH WARM WEATHER FORECAST FOR SOUTHEAST AUSTRALIA
Mice inflict grain pain
A mice outbreak is causing havoc across summer cropping areas. Here’s what’s being affected.
Saudi Arabia a barley saviour
After losing China as a market, a large volume of Australian barley has found a home.