LIMITED rain and some much needed sunshine in recent weeks was just what farmers were looking for, allowing crops to dry out from the wet June.
The combination of sunshine and a reprieve from the rain has seen crop conditions improve considerably, allowing from cereal plants to stool out and set roots down further.
Cereal crops in the western fringe of south western NSW area some of the best ever for this time of the year.
Wheat crops west of Condobolin, Lake Cargelligo and Hillston are bounding ahead with the drier weather which has farmers looking some of their best crops ever.
Crops in the central and north west, some of which were swamped following an exceptionally wet June, are drying out and responding to the sunshine.
The good start to the cropping season and ample moisture has traders and forecasters now raising expectations of the coming harvest.
Most are now saying the NSW wheat harvest will top eight million tonnes and may exceed nine million tonnes with a favourable spring.
Optimism towards the NSW 2016 winter crop harvest is being matched across other parts of the country.
Prospects for the countries 2016 harvest are looking promising on the back of above average winter rainfall in most of the key production regions.
Private forecasters and traders are raising their ideas about the coming harvest to upwards of 28 million tonnes, significantly higher than last year’s 24.3 million tonnes.
If achieved this would the Australia’s second largest wheat harvest ever, only second to 2011-2012.
Unfortunately, the outlook for “big” crops is also being matched in many other parts of the world, which is dampening the outlook for grain prices.
Domestic prices continued to sag last week as softer global markets and favourable local growing conditions weighed.
Stockfeed wheat into Newcastle fell by $7 a tonne to $258/t while sorghum was down $2/t to $216/t.
Declines in the old crop markets are also being matched in the exporter bids for new crop wheat and barley.
New crop Australian premium White (APW) multi-grade prices fell below $250/t port last week which is the lowest level since 2012.
Barley was also sharply lower last week.
New crop feed barley into Port Kembla is now sub $200/t port following sharp falls in Black Sea markets.