Feedgrain Focus: Southern dry boosts local demand

SA crops together with this wheat one within the Barossa Valley are crying out for rain. Photograph: Corbin Schuster

DRY circumstances in South Australia and western Victoria have boosted demand for feed barley to elevate up-country costs above weakening export values.

These have seen values in quoted markets drop this week by roughly $5-$15 per tonne, with the exception being sorghum, which has firmed barely because the moisture-affected tail of harvest restricts traded volumes.

Some grain gathered for export out of SA and Vic is being redirected into the home market, and on-farm gross sales are additionally going regionally for a premium to what container packers and port websites are providing.

Feedmills, graziers and blended farmers are all available in the market for much extra grain, fodder and pulses than regular right now of yr, however 10-25mm forecast for subsequent week might shortly mood demand.

Desk 1: Indicative costs in Australian {dollars} per tonne.

Quantity skinny in north

Every week of largely dry climate in Queensland and northern New South Wales has allowed grain to be delivered to home shoppers as scheduled, however the chilly spell has performed little to hurry the tail finish of the Darling Downs sorghum harvest.

Nonetheless, masses from farms are being turned out of high-aeration silos and driers, with exporters in a position to mix as much as required specs from what’s being delivered.

Southern Qld shoppers are wanting additional afield for barley now that uncommitted native shares are right down to the wire.

“Sorghum’s very flat, and multigrade sorghum goes into Brisbane,” Knight Commodities Goondiwindi-based dealer Gerard Doherty stated.

Offering a spike in values for feedgrain within the northern market are peripheral shoppers within the North Burnett, Vast Bay and adjoining areas.

“That’s giving us some ex farm values above the place the Downs market is.”

Qld shoppers are sourcing grain from nicely into NSW as the skinny wheat-export program out of Newcastle begins to tail off and growers in northern NSW take consolation from what seems to be prefer it nicely at worst be an average-yielding yr for the crop now within the floor.

Southern drought lifts demand

Very dry circumstances in high-rainfall grazing and blended farming areas of SA’s South East and Vic’s Western District have introduced sudden demand into the feed market.

This has seen business feedmills and graziers compete for elevated quantities of barley, wheat, oats, area peas, and faba beans.

Bulk handlers massive and small are taking the weird step of out-turning truckloads for the home market to fulfill demand caused by an especially dry autumn.

Many farms in SA and western Vic have had lower than one-third their annual common rainfall within the calendar yr to this point, and a few canola and winter cereals that might usually be relied on for grazing now have but to germinate or set up.

GeoCommodities dealer Brad Knight stated producers with livestock to feed are wanting regionally to get a load or two to assist them via this dry interval.

“Gross sales are neighbour to neighbour, cousin to cousin, mate of a mate, after which additional afield till they will get what they’re after,” Mr Knight stated.

“It’s very unseasonal for them to be shopping for grain this late; usually they’ll purchase late summer season and early autumn, and to not have had any actual rain since then could be very uncommon.”

Whereas large-scale feedmills with a number of mixing choices are pleased to include wheat into their rations, farmer demand is concentrated on barley.

“It feels just like the barley market’s gone right into a supply-demand rationing state of affairs, and it’s making an attempt to discourage exports.

“That market’s been growing over the previous few weeks however what’s occurring has been masked by the final market rally.”

Whereas the Melbourne market usually trades at $20-$30/t above the on-farm southern Wimmera market to cowl highway freight, the premium is extra like $15/t, to point the on-farm market has lifted on up-country demand.

Previous to southern drought demand kicking in, Australian feed barley was already unattractive to offshore markets compared with different origins.

“Barley is tough to promote for those who’re counting on conventional export markets.”

Up-country wheat values are additionally getting a kick from drought demand as large-scale feed producers chase it, and pulses too.

“Protein is in robust demand for feed.”