IN AUSTRALIAN agriculture at the moment all the talk is about the weather, and yes, it is a very important factor but there are other important aspects we should be looking at.
Sorghum price into the Darling Downs at $325 a tonne, $20/t behind wheat is excellent.
With strong export demand from China, consistent usage by the poultry industry that continues to grow and a good solid backstop for the Northern Australia feedlots and on farm demand, things are looking bright for sorghum.
Things are also looking bright with Central West NSW barley prices between $290/t to $300/t exfarm, supported by strong demand from dairy, feedlots and graziers.
Local exfarm bids for milling wheat, now at $280/t is also proving to be a healthy price.
New crop wheat bids are also on the up, reaching $310/t for Australian Premium White at Port Kembla.
This season’s 20018 -20019 canola offered at $490t/ to $495/t delivered silo is another good price.
The strong demand for all lamb, mutton, wool, beef, cotton and also property is great.
I have not seen all sectors of agriculture at once overflowing with demand and confidence.
We also cannot forget the increased opportunities that could arise from China due to the trade disagreements they are having currently with the US.
The continued unseasonal weather conditions being experienced in North and South America and in some areas of Europe, will begin to weigh heavily on the overseas futures markets creating volatility.
Should the weather continue, we could see some rash decision making in the market.
This would potentially allow growers to capitalise and take control of their marketing programs to achieve higher than average pricing for their grain.
On a different front there’s a positive vibe on twitter, such as growers showcasing their dry sowing efforts and seeing emerging canola crops sown on marginal storm rainfall.
As you can see, despite the dry the conditions, there are plenty of positive things happening.
I’m a firm believer that you make your own luck and the opportunities will flow.
