Agfarm Market Update

Finally, we have received some much needed rain in the northern parts of NSW, with the majority of NSW’s central west receiving around 10mm.

While not exactly the amount the doctor ordered, nor to the extent the patient needed, growers are still willing to take what they can get.

The rainfall will by no means ensure a bumper crop in the north western part of the state, but it will allow another few weeks breathing room until more rain (hopefully) is received.

Although very late in the season, if we received upwards of 25mm, we would have expected further late barley to be sown on fallow acres.

But given the majority unsown acres are on heavier dark soil, 10mm in total will not be enough to take the risk.

Narrabri received 22mm in this change, and as a result crops around this area and the east are still looking in great stead.Unfortunately, the north western border region largely missed out once again.

Markets have continued their recent grind lower on the back of softening international values, rainfall and the majority of the trade focusing on other things at the annual grains conference in Melbourne this week. Never the less, the recent rainfall and downside in local values still hasn’t encourage any great deal of selling. The barley wheat spread has narrowed last week, as we have seen further downside in the wheat complex, while barley has remained relatively firm.

This comes back to more of a supply and demand function as the trade have been selling wheat longs, providing liquidity in an up until recently quiet market.

The recent rain will stem enquiries in the farm to farm market for the short term, although one would imagine if we don’t see further rain forecast in the next two weeks, it will start to emerge once again.