Local Grain Focus | Winter seeding is underway

Local Grain Focus | Winter seeding is underway


Grains
Northern sorghum prices were easier with the rain but tight supplies in the south continues to support on farm values.

Northern sorghum prices were easier with the rain but tight supplies in the south continues to support on farm values.

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Last week's rain was a start, but soils are bone-dry, and significantly more rain is needed to ensure a normal winter crop planting.

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Last week's patchy rain in the aftermath of Tropical Cyclone Trevor has allowed NSW farmers to make a start on planting the 2019 winter crop.

Overall, last week's rain was disappointing, falling well short of the soaking that farmers require to peg back the massive soil moisture deficits accumulate in the past 24 months. But it's a start.

Parts of the central west enjoyed the best of last week's storms with Coonamble registering 100mm. Gilgandra, Coonabarabran, Mendooran, Binnaway, Dunedoo, Pilliga, Wee Waa, Narrabri, Gunnedah, Quirindi and Tamworth all recorded a welcome 50mm to 75mm last week's rain.

Further to the north, totals were lighter in the Walgett, Rowena, Mungindi and Moree regions where most parts saw 15mm to 30mm.

Falls also tapered away in the in the central west plains with Nyngan, Trangie, Condobolin only receiving 10mm to 15mm for the week.

This improved to 20mm to 40mm in the south west and the Riverina.

Last week's rain was a start, but soils are bone-dry, and significantly more rain is needed to ensure a normal winter crop planting.

Farmers have been quick to plant oats on last week's rain and some canola has been seeded. Most farmers will be waiting for another rain before planting wheat.

Cattle prices have rocketed higher following the widespread rainfall through Central West Queensland as restocker buying lifts competition.

The Eastern Young Cattle Index has jumped 28pc from the lows of 385 cents a kilogram (carcase weight) in early March to 494 cents in late April.

Grain prices were generally softer last week.

Northern sorghum prices were easier with the rain but tight supplies in the south continues to support on farm values.

Sorghum was down $6/t at $346/t delivered into the Darling Downs, although the rain was too late to benefit most sorghum crops.

Melbourne grain markets eased by $4/t to $5/t.

Australian Premium White was down $5/t to $395/t delivered Melbourne while the new crop was also down $5/t to $320/t.

The International Grains Council released its first detailed forecast for the world 2019/20 wheat crop last which pointed to a share recovery on global output after major droughts in the European Union and Australia last year.

Global wheat production is expected to increase to 759 million tonnes from last year's 735 million tonnes, IGC said.

European Union wheat output is forecast to climb by 11 million tonnes to 149 million tonnes on a return to average yields, while Australian wheat production is projected at 22.9 million tonnes, after last year's disappointing 17.3 million tonnes.

IGC forecast that wheat production in Russia would increase by 5.4 million tonnes to 77.1 million tonnes.

US wheat futures tumbled late last week following the release of bearish stocks and planting data on Friday.

The USDA released its report on US grain stocks at the beginning of March which revealed corn stocks were 7.6 million tonnes higher than market expectations.

Corn futures tumbled 4pc on the news, dragging wheat lower.

Asian buyers are already securing new crop Black Sea wheat for a July to September shipment at aggressive prices compared to the current prices in Western Australia.

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