SA grain prices ease on approaching rain

SA grain prices ease on approaching rain


Cropping
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South Australian grain prices eased over the past week on expected widespread rain across eastern Australia.

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South Australian grain prices eased over the past week on expected widespread rain across eastern Australia.

Weather forecasters are predicting showers across South Australia as well as a general 10-15 millimetres across much of Victoria, New South Wales and extending up to southern Qld this week.

Isolated heavier falls of 20-50mm are predicted in some areas.

Optimism is high that the cold front may result in the general rain that farmers need tom germinate crops, with computer models consistently predicting the rainfall event for more than a week.

The rain won't be drought breaking, but it may offer enough moisture to trigger a general starting to plantings and kickstart the 2019 winter cropping program.

Substantial falls of 100-200mm of rain is needed to make up for the rainfall deficits seen in the past 12 months.

Until now, the absence of an autumn break has prevented a general start to planting. Light showers have also resulted in 5-10mm of rain across the Eyre Peninsula with the rain even yet to reach the Yorke Peninsula and Mid North.

Some farmers have already taken the punt in planting dry ahead of the expected rain event.

Dust has been blowing across many South Australian cropping areas ahead of the anticipated rain as farmers looked to plant a proportion of their crop dry.

Ongoing dry weather has continued to support grain prices and bids have dropped as the prospects of general rain improved.

Grain markets have been thin with the ongoing dry weather. New crop APW wheat bids into Port Adelaide were down $10 to $290 while Port Lincoln bids fell to $280.

Similar declines have been seen in Victoria and NSW.

Global wheat markets continued to tumble last week as forecasters eye-off another year of bumper Black Sea wheat crops. United States Kansas wheat futures tumbled 4pc to the lowest level in close to 12 months.

The declines in US wheat futures are reflective of the underlying weakness in global wheat values, with the new crop Black Sea wheat futures now the most accurate barometer of prices.

New crop Black Sea 12.5 protein wheat futures fell by US$3 to US$186 FOB last week and has fallen US$8 in the past four weeks.

The International Grains Council lifted its forecast for the world 19/20 wheat crop last week, on the back of the improving outlook for Russia's wheat crop. IGC said world wheat production is set to climb by 26.5 million tonnes from last year to 761.5 million tonnes.

Canadian farmers are expected to reduce canola plantings by 7pc, according to a recent government planting survey, following Beijing's de facto ban on its canola imports.

Spring wheat plantings are expected to climb to an 18 year high while barley seeding are likely to increase by 10pc from last year's levels, as farmers swing to alternative crops, the survey data revealed.

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