WITH a week of wet weather upon us, questions will linger about grain quality and percentage of harvest completion, as areas along the east coast brace for rain exceeding 100 millimetres for the week.
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Harvest in southern Queensland and northern NSW is all but completed, however harvest in central and southern NSW rages on.
Although most growers made solid progress after the last rain, everything has all but come to a standstill this week with rain across the majority of NSW.
After two rain events during the past fortnight, questions of quality and downgrades are all the talk within trading circles, as most farmers battle with a challenging end to the season.
From low yields in the north, to the late frosts through Victoria, this harvest period hasn’t been easy for anybody on the east coast.
The issue of weather damage will become evident as the ground dries out and we begin to harvest what remains.
However it is expected that some cereals will be destined for the feed market when headers get moving again.
How much is unknown at this stage, but judging by the amount of rain that has fallen, there will be some that feel the pain of a wet harvest.
As many would have noticed protein spreads have narrowed during the past fortnight, with Australian Prime Hard (APH1/2) coming off some $15 to $20 a tonne throughout the Central West.
These higher grades remain the best sell currently, but with potential downgrades following this rain, it could be worth holding for a short period and assessing the millers’ appetite post this rain event.
Receivals into all bulk handling sites across NSW are down this year, running at less than half of what was taken at the same time last year.
This gives an indication as to how hard this season has been, as well as the rise of on-farm storage, be that in bags, silos or bunkers.
Plenty of people perceive the rise of on-farm storage coming for the following reasons; increased flexibility, harvest logistics and the increase in pulses and specialty crops.
All of these reasons are valid, but we must advocate that you plan to execute these ex-farm sales in a timely manner and to align with your cash flow needs.
Remembering most payment terms are 30 days after delivery, so planning for this months in advance are a must so you are not forced into selling into a lower market, just because you need cash.
