June 25, 2010
North-west Australian winter crop planting 95% complete
Winter crop planting in North-western Australia is almost complete, with 95% of crops in.
Some growers have stopped planting due to lack of moisture and may begin again if 25mm of rain is received within the next two weeks.
Many hectares have been left for fallow due to rotational practices or the opportunity of good returns for cotton, as the currently preferred summer crop for the growers geared for this operation.
The markets have been fluctuating over the past couple of weeks. This is being highlighted mostly by the fluctuations in the value of the Australian dollar.
Concerns over plantings of wheat and rapeseed in Canada are having some effect, however the extent to which this impacts the market is yet to be seen.
Some growers have locked in future contracts to reduce the risk of volatility in the markets.
From where the market has been since 2009 harvest, the bids being shown at present are attractive with old crop rapeseed being bid in the high AUD470 (US$405)/mt for Newcastle track and AUD490 (US$422.2)/mt for delivery into Newcastle Plant.
There has been little to no spread between old crop and new crop rapeseed, suggesting Australia may be near the top of the bidding, given world supplies.
Old crop wheat tonnes have been moving in a subdued fashion, with very little difference between what wheat buyers are bidding for this grain.
New crop wheat is currently being bid AUD214 (US$184.4)/mt for APW1 Newcastle track.
This has not seen many growers commit tonnes and is unlikely to unless upward pressure is placed on the dollar, or the crop is closer to certainty.
On-farm storage is also playing a big part in how growers market their grain, with premiums being offered for grain to domestic homes or the container market. These homes can be filled quickly, so it is crucial for the growers to stay in close contact with their preferred marketer and be aware of market influences.
