Sorghum harvest kicked off last week in the Darling Downs adding further pressure to the already soft grain prices.
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It will be a long-drawn-out sorghum harvest that will extend for several months with plantings dates stretching from September into January.
Sorghum bids fell by about $10 a tonne to $385/t delivered into the Downs as the new crop supplies started to be delivered into storages.
Exporters have reported softening in buying interest from China, which accounts for most of Australia's sorghum exports.
Upwards of 2.1 million tonnes of Australian sorghum was exported to China in the 12 months to November 2023, representing more than 80 per cent of the total sorghum shipments.
Exports have slowed considerably in recent months on dwindling old crop supplies.
Traders are saying China's appetite for additional purchases has also softened as imports of US sorghum seasonally increase.
Ongoing stormy weather patterns is keeping later planted sorghum crops in northern NSW and southern Queensland primed and on track for above average yields, boosting the chances of another large export season.
The Liverpool Plains and Moree has already seen 50 to 80 millimetres of rain in January.
Similar falls have been recorded across the Queensland's Darling Downs.
After some strong early season sales, exporters are saying demand wheat and barley has subdued.
Southeast Asian importers have diversified wheat imports away from Australia in the past six months to cheaper origins including Russia, Ukraine, Europe, and Canada.
It's a very different situation to last year where Australia wheat was competitively priced against other origins, resulting in strong exporter demand.
Chinese demand for Australian barley also appears to have cooled.
Canola prices kicked last week helped by a firming in palm oil prices ahead of the Chinese Lunar New Year.
Local canola prices have steadied in recent weeks after tumbling by around $100 late last year but are still more than 10pc below where they were in early 2023.
Global wheat markets steadied last week following sharp declines in early January as demand emerged from the Middle East and Africa.
Algeria, Egypt, Jordan, and Tunisia bought upwards of 1.6 million tonnes of wheat by tender during the week.
Wheat from Russia, eastern Europe as well as France is expected to capture most of last week's tender demand.
