Last week saw a massive increase in domestic values across the board, with the majority of cereals firming anywhere between $25-35/MT.
Aggressive firming international values only added fuel to fire, with our domestic market already climbing fast as another week of dry weather passes.
Last week the local government officially announced all of NSW as drought declared, and many areas in QLD are not far behind.
Read more: Conditions remain tough Central Western NSW
It is safe to say the majority of sown crops in Newcastle and Brisbane zones will now be written off, and any still holding on will need rain in the next 10 days to keep some type of potential there.
There isn’t a great deal of old crop carry out in the Newcastle and Brisbane zones, as the 2017/18 season was well below average in these areas and the majority of that massive 2016/17 crop has now been moved.
This begs the question, where will the north get its grain supply over the next 12 months?
Shipping and long-distance train execution is going to play a big part as northern feed homes will have to rely on grain in Victoria, South Australia and even Western Australia.
Growers, buyers and consumers alike will be watching for any type of spring break to allow a summer plant in the north.
With so many fallow acres available we could very well see a massive sorghum crop go in, but we really need a good five to six inches of rain to set us up heading into spring.