Prices mixed and higher

The Northern Star - Northern New South Wales Rural Weekly - - NEWS -

THE first de­liv­er­ies of grain for the 2018-19 sea­son are mak­ing their way into ports, fol­low­ing a mixed start to au­tumn sowing and a drier than av­er­age win­ter.

Just as con­di­tions have been mixed across Aus­tralia’s grain grow­ing re­gions, so too are prices for grain de­liv­ered to port. Bulk grain han­dler Viterra re­ceived its first load of grain in South Aus­tralia last week­end, sig­nalling the start of the state’s har­vest.

The first load – a de­liv­ery of H2 wheat into Port Pirie by Port Ger­mein grower Steven Mudge – was of good qual­ity and good test weight. Viterra op­er­a­tions man­ager Michael Hill said he ex­pected a mix­ture of grain qual­ity over the 2018-19 har­vest.

“We have pre­pared our seg­re­ga­tion plan to meet a broad range of re­quire­ments for grow­ers and end-users,” Mr Hill said.

“We will also open ad­di­tional seg­re­ga­tions dur­ing har­vest based on the grain that is be­ing de­liv­ered. Port Pirie also re­ceived the first load of bar­ley for the 2018-19 sea­son, along with the first load of peas. In West­ern Aus­tralia bulk grain han­dler CHB Group re­ceived about 36 tonnes of canola de­liv­ered to the Ger­ald­ton Port on Oc­to­ber 17, with more de­liv­er­ies of canola and bar­ley ex­pected to fol­low. H2 wheat de­liv­ered to Mel­bourne last week went for $472 tonne, up on $290 in Oc­to­ber last year, while APW wheat de­liv­ered to Mel­bourne last week fetched $453 a tonne, an in­crease of $183 a tonne on last year’s fig­ure.

Malt 1 bar­ley de­liv­ered last week to Mel­bourne went for $460 a tonne, up on $249 for the same time last year.

Milling oats de­liv­ered to Mel­bourne last week sold for $480 a tonne, up on last year’s price of $200 a tonne.

Oilseed prices were also mixed, with desi chick peas de­liv­ered to Mel­bourne last week fetch­ing $780 a tonne, down from $830 a tonne in Oc­to­ber last year. Faba beans soared to $750 a tonne, up on $285 a tonne de­liv­ered to Mel­bourne last year.

A Com­mon­wealth Bank mar­ket anal­y­sis re­port re­leased last week put the ASX East Jan­uary 2019 wheat con­tract at $444 a tonne, while also not­ing a sharp drop in oilseed prices.

An­a­lyst Tobin Gorey wrote in the re­port that canola prices were af­fected by slow US soy­abean ex­port sales.

“Weather fore­cast­ers ex­pect ma­jor soy­abean re­gions – Mato Grosso in Brazil, Cor­doba in Ar­gentina – have been on the dry side,” Mr Gorey said.

“Weather fore­cast­ers ex­pect both re­gions to get good plant­ing rain over the next week or so. The price fall also takes some heat out of the mo­men­tum is­sue too.”

Mr Gorey said while the global mar­ket lacked some di­rec­tion, the world wheat mar­ket could set­tle down soon as ma­jor pro­duc­tion risks for the sea­son pass.

“The rains in Aus­tralia’s win­ter crop re­gions over the past week are likely to have put a firmer foun­da­tion un­der crop fore­casts for sea­son 2018. Crops in south­ern re­gions, east and west, re­main vul­ner­a­ble to frosts.”

PHOTO: CON­TRIB­UTED

IN DE­MAND: Faba beans soared to $750 a tonne this week.

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