LOCAL grain prices ended moderately lower last week after the drought stricken areas of the Darling Downs in Queensland received rain, but rain in NSW was disappointing.
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General storm activity across the Darling Downs brought some relief to struggling summer crops.
About 15 to 60 millimetres of rain fell across the Darling Downs last week as welcome storms lashed the region.
The recent rain comes as a huge relief to southern Qld growers where sorghum crops were going backwards by the day.
Crops responded immediately to the rain but will be looking for another drink shortly.
Brisbane sorghum prices fell by $10 to $15 a tonne following the rain to $340/t delivered.
Other feed grains were also sharply lower following last week's rain across the Darling Downs.
Price declines were generally smaller across the Darling Downs markets where end users were keen to extend their coverage on the rain.
Sorghum slipped by $6/t to $334/t delivered into Darling Downs markets while feed barley was down $7/t to $328/t and stocked wheat declined by $5/t to $340/t delivered.
Unfortunately little rain extended across the border into NSW.
Moree had about 10mm to 20mm for the week.
Little to no rain fell across the Liverpool Plains with farmers now desperate for rain to save sorghum crops.
Many of the sorghum crops are still holding on well given the extremely hot, dry weather recently but yields will start to suffer shortly without some soaking rain.
Storms delivered 25mm to 40mm of rain across the Riverina last week which will prompt summer weed growth.
NSW grain markets were generally softer following the Qld rain but losses were modest.
Recent scorching temperatures combined with the extended dry spell have left many farmers desperately short of pasture which may have implications on grain markets.
Feed manufacturers are already reporting a kick in feed sales after hot temperatures burnt off the remaining green pick in the coastal areas.
This pattern is expected to continue into autumn without rain.
The Bureau of Meteorology issued an improved seasonal outlook for the February to April period.
The Bureau was forecasting a drier than normal summer for NSW in December but tempered the January seasonal outlook where they said the changes of drier or wetter weather during the next three months was about equal.
Ocean temperatures indicators are not hinting the development of an El Niño although these usually don't become apparent until we are into the winter months according to the Bureau.
News the Australian dollar slipped to a three-and-a-half-year low last week was greeted warmly by farmers but immediate concern is firmly on rain.
International grain markets were modestly stronger last week.
US wheat markets bounced by $2/t to $3/t on the back of strong export demand for wheat at current prices.
International buyers have been happy to extend coverage following the recent dip in world prices with many of the major importers securing volume.
Exporters sold 200,000t of Australian hard wheat to Iraq last week.
Iraq also bought a further 100,000t of Canadian wheat and 50,000t of US Hard Red Winter wheat in the same tender.
Algeria also bought about 500,000t of wheat by tender last week which is expected to come from France.
There were also reports China was in the market for more wheat.
However, the abundance of global grain supplies is capping gains.
India is expected to remain an important wheat exporter through the remainder of 2014 and extending into 2015 with the government expecting they will harvest a record large wheat crop of 100 million tonnes in a couple of months.
This massive crop is about 10 million tonnes above their domestic needs and will put force the government to continue selling wheat for export at world prices to manage already overflowing stocks.
