Grain prices improve by $20/tonne

A combination of global markets and recent rain has helped to lift prices for grains and cropping farmers. See how values are tracking.

A combination of improved prices offshore and recent rain has allowed for an uptick in commodities for grains and cropping farmers.

Across the winter commodities, there has been an increase in prices of around $20/tonne.

After dropping below the benchmark $600/tonne mark earlier last month, canola has had a welcome rebound, with prices lifting to $670.

Market Check chief executive officer Nick Crundall said there were several reasons for the improved markets.

“Prices are kicking in northern NSW and Queensland,” he said.

There were some concerns among purchasers of feed grain about potential downgrades from the rain-affected sorghum crop.

While downgrades weren’t welcome news, Mr Crundall said it did help impact markets overall.

And despite the heavy rain in parts, some regions of Victoria didn’t receive a lot.

“Victoria had some patchy rainfall, and there are still farmers waiting for an autumn break,” he said.

Wheat is trending at around $345/tonne at ports in Victoria, and there were indications of a firming of the trade.

Grain Producers Australia chairman Andrew Weidemann and Rupanyup farmer measured 8mm of this rain, however, it followed around 30mm that had fallen in the previous week.

It wasn’t the substantial rainfall in other regions, although he was optimistic about the better grain prices.

Canola seed.

“We are seeing canola at around $670 to $680/tonne delivered to Geelong, and some growers could lock in prices of $700/tonne, which is attractive enough,” he said.

Mr Weidemann said the uptick for canola was significant because it costs around $100/hectare in seed costs to sow.

Roy Hamilton at Rand in southern NSW had started sowing into what he described as near-perfect soil moisture.

His property received 31mm of rain in the past week, which he described as a bonus.

“We had already put some grazing triticale in and are just starting on (sowing) some grazing canola. I’m sitting in the tractor as we speak,” he said.

“The moisture is good, and the crops will germinate well,” he said.

Despite some price fluctuations, Mr Hamilton said he would stick to the program and seek marketing advice from the grain traders.

He will sow vetch, canola, triticale, wheat, and faba beans this winter.