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Primary content

Read about the national and international grain market and how grain contributes to farm inputs and costs.

International and national summary

National background comments: report for the week ending 12th January, 2018

The next update will be on Friday 19th January 2018. Direct links to reports on each dairy region immediately follow this international and national summary for grain.

Driving Prices Up

  • USDA Report coming out at time of release. If there is lower supply in the report the US market could be triggered into a short covering.
  • US futures are responding to lower USD by trading higher to balance global competitiveness which could force the futures into a technical rally.
  • Large speculative short positions held by funds in CBOT futures and freezing temperature forecast in the US southern plains are causing some buying.
  • Ethanol demand is the major supporter of corn at present, holding it up against weakness in outside markets.

Driving Prices Down

  • Fundamentally, global wheat stocks-to-use are still burdensome.
  • Wheat buyers are less prominent than execution slots out of Australia which is forcing some lower FOB sales from the trade just to utilise capacity. 
  • A rising AUD is forcing local prices to remain subdued. 
  • Black Sea prices were a touch softer and could threaten US flat price if they buy back some of the feed demand that the US has seen recently

Global Trade News

  • The Baltic Dry Index which is a sea freight rate indicator has been volatile, causing changes to origin prices.

Local News

  • East Coast wheat and barley markets are looking very strong and have rallied since the New Year.
  • Harvest has had a good run over Christmas and New Year which is helping the southern states draw to a close on harvest.
  • The weather damage preventing farmers from having confidence in quality and volumes means that they have been reluctant to sell which supporting markets because of reduced liquidity. 
  • Feed barley demand out of China remains strong and should see the shipping stem reasonably full of barley for the next 3 months. This is also proven by an inverted barley market making spot prices higher than deferred.
  • Sorghum in the north the only shining light that could keep a lid on the lack of wheat and barley this year.
12-January-2018 Grain
Wheat Barley Maize Sorghum
Atherton Tableland Price Range $340 $350 $470 $480 $425 $435 $315 $325
Change Steady Steady Steady Steady
Darling Downs Price Range $325 $335 $320 $330 $365 $375 $325 $335
Change Steady Steady Steady Steady
North Coast of NSW Price Range $320 $330 $320 $330 $370 $380 $285 $295
Change Steady Steady Steady $10
Central West NSW Price Range $265 $275 $260 $270 $340 $350 $275 $285
Change $5 Steady Steady Steady
Wheat Barley Maize Canola meal
Bega Valley Price Range $315 $325 $310 $320 $390 $400 $425 $435
Change $5 Steady Steady Steady
Goulburn / Murray Valley Price Range $255 $265 $245 $255 $330 $340 $395 $405
Change Steady Steady Steady Steady
Gippsland Price Range $290 $300 $280 $290 $380 $390 $415 $425
Change $5 Steady Steady Steady
South West Victoria Price Range $260 $270 $250 $260 $390 $400 $425 $435
Change $5 Steady Steady Steady
South East South Australia Price Range $245 $255 $240 $250 $410 $420 $450 $460
Change Steady $5 Steady Steady
Central Districts of SA Price Range $250 $260 $245 $255 $395 $405 $455 $465
Change $10 $5 Steady Steady
Wheat Barley Triticale Oats
South West of WA Price Range $265 $275 $265 $275 $295 $305 $175 $185
Change Steady Steady Steady Steady
Wheat Barley Maize Canola meal
Tasmania Price Range $320 $330 $315 $325 $410 $420 $455 $465
Change $5 Steady Steady Steady

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