COMMODITY traders say a big challenge awaits following a monster winter crop harvest: selling all the feed grain in the system.
And with summer crops such as sorghum already harvested and more ripening across northern NSW, the pressure on prices across the feed category is not expected to ease any time soon.
Bill Preston from Preston Grain at Temora said the feed grain market had been reasonably quiet, although there had been some inquiry from the Yass and Boorowa areas in the past few days.
"Some people will be looking to put a bit of grain away for the winter, but many of the end users and millers will have their requirements covered right through until the end of March," Mr Preston said.
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"There's a lot of grain still stored on farm and some of that may have to carry over into the next season."
At the same time, he said many farmers with grain stored on farm were in no hurry to sell.
"Come March, when they are looking to buy fertiliser and the like, they may want some cash and we may see them looking to sell a bit more grain," he said.
He said Preston Grain was quoting feed barley at about $195 to $210 a tonne (on farm) this week; prices were closer to $340/t this time last year.
However, he said the price last year reflected the drought and a much smaller grain harvest.
He said the prices were not too bad for the size of this season's winter crop, but they were being pushed up by the demand from the export market.
"We may have lost China as a big feed grain buyer, but grain exporters have worked to find other overseas markets and that's helping to keep the domestic prices steady," he said.
Machallie McCormack from igrain said while there was a lot of grain to sell due to the big winter crop harvest, the prices were still quite good and an extensive export program was helping to move the high grain stocks.
Even so, Ms McCormack said there was still plenty of grain looking for a home on the domestic market.
"The feedlots were 'chockers' this time last year and buying plenty of grain," she said.
"This year they are still buying, but not what they were last year.
"At the same time, there's plenty of grass about so people are not feeding stock in the same way they were last year.
"Internationally, feed grain stocks are low and that's putting pressure on prices.
"In the northern hemisphere, there's been a really harsh winter and we are already seeing wheat and corn futures at five to seven year highs."
Ms McCormack said even though grain futures had been volatile recently, she expected domestic feed grain prices would remain steady in the short term.
"The prices have been stable for three weeks to a month now and I can't see that changing too much in the next few weeks," she said.
For Griffith, igrain was quoting Barley 1 at $205/t (on-farm) this week.
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