Barley is delivered to GrainCorp’s Talwood site, just north of the NSW-Queensland border. Photo: Dave Beare

NEAR wheat and barley markets increased this week in response to limited sales by producers in the deliver-to-consumer market.

Export build-up continues to dictate values, and domestic and east coast consumers are raising their bids ahead of the arrival of the new crop barley and already booked SFW wheat.

Global demand for Australian wheat has swelled the gap between it and barley in the domestic market and increased the attractiveness of barley for consumers who plan to switch to low protein wheat within weeks to come if the price is right and the volume is there.

Close New harvest
Barley stocking $ 288 up to $ 3 $ 303 up to $ 8
Wheat Downs $ 375 up to $ 25 $ 350 up to $ 18
Sorghum stockings $ 308 up to $ 3 $ 280 down payment of $ 5
Barley Melbourne $ 295 up to $ 13 $ 305 up to $ 15
Wheat Melbourne $ 370 up to $ 20 $ 365 up to $ 25

Table 1: Indicative delivered prices in Australian dollars per tonne.

Queensland harvest hits the straps

In the week leading up to 9 a.m. today, scattered thunderstorms brought rain and a few patches of hail in some grain-growing areas of Queensland, but most received little or no rain.

Among the highest records were: Emerald 24mm; miles 39 mm; Macalister 52mm; 20mm spring;

The Queensland barley harvest is well advanced and the wheat harvest is accelerating in the southwest of the state.

A commercial source said trucks to deliver grain to feedlots and other consumers in the interior were difficult to come by as a number of operators are busy picking up at the farm and delivering consumers in Brisbane or at port terminals.

Due to COVID vaccination requirements for drivers entering Queensland, some operators are not traveling to New South Wales to collect grain.

This further constrains the availability of freight.

GrainCorp’s payment terms two business days after delivery have made its deposits popular among producers and indicate an aggressive build-up for wheat exports.

“Some growers will deliver directly to the GrainCorp depot and get paid within two days. “

Feedlots have the highest prices at some bulk handling depots in Queensland, as producers look to move some produce to local sites ahead of what will be their biggest winter harvest since 2016 for many.

Sorghum is still sold to container packers and bulk export accumulators.

“The business tries to discount the wheat from the new crop, but their offers are unsuccessful.”

Feedlots win contracts from producer-brokers who claim road train houses.

“Road trains cannot enter some of the factories on the Inner Downs, but they can access the feedlots on the Western Downs. “

“It complicates the task of the mills in the cities a bit. “

The NSW crop is a day or two from start after a dry week in the northwest plains, and patchy falls in central and southern areas with Condobolin, over 26mm, and Young, over 27mm, achieving the highest level of the grain belt.

Limited southern offers

Many dryland crops in Victoria have had a drink in the week to today, with much of the Mallee and Wimmera reaching 10-20mm.

Commercial Director Melaluka Mick fitzgerald said southern producers were more likely to lock in futures prices on lower grades.

“The feeling in the south is that with prices at current levels, feed wheat is indeed being exported to Asia.”

Mr. Fitzgerald South, the discount on SFW over base ASW is now around $ 45 per tonne, down from around $ 30 / tonne a few weeks ago, as the likelihood of a large volume of low protein wheat in South East Australia is increasing.

He said this week’s rally could have something to do with short selling in the market.

“Every October there are a few DCT traders that need to be covered, and some end users are there too.”

Agent of the broker GeoCommodities Brad Chevalier trade is limited and consumers and exporters compete for the higher protein wheat.

“They prefer to own a little bit, given the weather,” Mr. Knight said.

Domestic consumers in the south are considered generally fully covered for this month, and hope that the early arrival of the new crop will put pressure on the market delivered in November.

Despite some downpours in South Australia last week, Viterra, the state’s largest bulk handler, yesterday received its first load of the 2021-22 crop, of field peas delivered to its Port Neill site on the Eyre peninsula.

In a statement, Viterra said the 2020-21 shipping season saw around 5.5 million tonnes of grain exported through its network and deliveries were low.

“We continue to experience strong demand for cereals from our network, which is great news for producers preparing to deliver to our sites,” Viterra West Region Manager Nick pratt noted.

“We expect deliveries to start slowly over the next few weeks. “

As with Queensland, port-delivered offerings appear to be gearing up for South Australian producers this harvest, with Viterra claiming to have strengthened its service offering by introducing direct and digital-to-port delivery advice.

“Our producer and buyer customers can benefit from a reduction of up to $ 11.10 per tonne in receiving charges with direct port, allowing buyers to purchase grain directly from producers before a ship is reserved for loading, ”Mr. Pratt said.

“It offers greater flexibility to producers who prefer to store their grain on the farm and deliver their grain directly to the port after harvest. “

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