As harvest grows closer to completion on the east coast, the trade has begun to turn attention to the upcoming Sorghum crop. Late rain during the traditional winter crop harvest period and higher year-on-year pricing has given growers optimism for summer cropping and we have seen plantings increase accordingly.
As recently as the beginning of December, the spread between sorghum and wheat was as wide as $70 which is $35 above the average across the past 10 years. As we progress through the final weeks of 2017 and into the new year, the values will rely heavily on summer rain.
In the past week, the Sorghum market has shown volatility and rallied by up to $8. Brisbane and Newcastle track markets are trading at evens around $272, while Sor1 delivered Darling Downs for March/April is trading between $268 and $270 with delivered Brisbane at $10 - $12 over.
Further information on the summer crop outlook is provided in NAB’s rural commodities wrap, including price and production data. CLICK HERE to download.