The past month hasn’t given us too much excitement on the pricing front. Wheat prices have fallen during the course of the month, with delivered Downs values falling from $365/mt at the start of the month to around $348/mt today for old crop. Similarly, new crop numbers have also fallen from $330/mt delivered to around $312/mt for 70/10. There’s no denying these are still fantastic numbers to price grain at, but we are still a long way out from harvest and moisture levels aren’t giving much confidence in selling. New crop track values for a multigrade contract have spent the month trading in a $10 range, between $325-335 Brisbane track and around $303-315/mt Newcastle track. For the last part of the month, durum has been on everybody’s lips. We have seen new crop figures around $370/mt Newcastle for DR1. For a lot of growers, there are still too many uncertainties to commit to pricing but those that are willing, this is a good starting point.
Barley remains fairly quiet. There was a little new crop selling interest earlier in the month but as prices dropped away, so did enquiry. Sorghum demand was up and down through June. It was shunned at the start of the month and prices fell $30/mt in the Newcastle zone, almost overnight with the expiry of May contracts and shorts. Consumer demand has been filled very quickly and any openings are filling quickly. For the most part, we have shifted demand now from July/August out to September/October. Prices seem to be in the $250/mt XF range at the moment and up to $260XF for October movement. Harvest is not yet complete on the Liverpool Plains and those still harvesting are quickly running out of storage as they can’t get grain moved off-farm quick enough. There is demand for SSOR in the system. In the past week it has been trading between $335-340/mt site, depending on which site.
Chickpeas have gone to ground, with little demand and minimal selling interest. We believe most growers are waiting on the new Financial Year (and eagerly awaiting s price spike) to price more. Chickpea values haven’t seen a lot of action and ended the month around $435/mt delivered Downs for old crop and $445/mt delivered for new crop. Faba beans have been bid all month at $420/mt delivered Narrabri/Goondi and up to $20/mt better delivered Downs. There is no doubt these are excellent values for faba beans and anyone comfortable with production but holding out for better prices is mad. Sometimes we have short memories but a lot of you will remember that only a few years ago (2008/2009) growers were excited to receive $200XF and in fact we were paying $170XF Narrabri/Gurley for fabas and a portion of the crop remained unharvested and just ploughed back in as green manure.
There are still crops going in and the last week of June has finally given us some colder weather. This will help to slow crop development down and perhaps increase demand for feed grains in the New England region, providing those with old crop an alternate selling opportunity.