That’s a wrap.
The harvest season is done and dusted for many winter cereal crop producers.
Another wet harvest in the final weeks of 2011 saw some growers facing concerns about their returns.
However, despite ill-timed weather last year’s harvest season ended on a good note for many including Narromine’s Agrigrain facility which received filling shipments of various produce.
Agrigrain’s Commodity Trader, Sam Ward says that while some high quality grain was received, much of their intake was glorified feed grade.
“There is a good demand for feed or AH9 type grades,” he said.
While there is a good demand for this grade, the bulk handling system sees tough trading for domestic and international markets,” he said.
Prices were down approximately $50 per tonne on feed or AH9 grade wheat and up to $100/mt on milling grade across the board from 2010.
After two unlucky seasons, many producers this year may look to downsize their operations.
“There will certainly be people out there that are discouraged by it (last year’s season) so the acres might be back a bit with where prices are at the moment,” said Mr Ward.
“But you’ll have your traditional growers that will grow it regardless of price.”
When considering market options for grain, Mr Ward suggests taking advantage of spikes in the market and sell over a period of time.
He warns not to try to pick market tops when making these decisions.
While prices are well below where many producers would like to see them, Mr Ward said there is still potential.
“If it looks good and it works out in your budget, jump on it.”
Mr Ward is optimistic 2012’s winter crops will only benefit from last year’s weather events.
“It’s a good start to the season so expect to go again with moisture in the ground.”