Domestic values reach new highs while offshore markets remain volatile.
With drought conditions now present across much of the eastern growing areas in Australia, feed markets have responded accordingly. At the time of writing, SFW wheat delivered onto the Darling Downs has traded at $398 for prompt delivery while F1 barley has traded above $400. While the northern markets are used to gauge values for ex farm stock, they have been a little slow to react with spot loads trading well over the equivalent delivered values quoted above.
Many growers are now faced with the difficult decision of choosing between ongoing intensive stock feeding or quitting them. It is dire times when there are cattle too poor to make it to the saleyards.
Rightfully so, many growers have a tight hold on remaining grain as a means of spreading cash flow.
On a positive note, the conditions in the US have added support to our new crop values with SFW wheat delivered Darling Downs currently bid at $365 for January 2019 and F1 barley bid $340.
There are some suggesting that we are in line for a June break and with 2018 being an analogue year to 1996 this may be accurate. Here’s hoping it arrives sooner rather than later.