Rain across southern Queensland last week has farmers confident of good yields as we head into spring.
Forecasts for widespread rain across southern Queensland didn’t disappoint, with most areas recording 30mm to more than 70mm in parts.
Dalby recorded 25mm for the week, which was at the lower end of the scale, while Jandowae recorded 39mm. Rainfall amounts were mostly heavier to the west and into the southern Darling Downs. Millmerran had 75mm to 80mm which has nearly assured these areas of a good harvest.
Miles recorded 36mm for the week, while Surat, Hannaford and Meandarra all recorded 65mm to 80mm. Areas around Goondiwindi also received good falls with Southwood, Talwood, Nindigully, Dirranbandi and Mungindi all receiving 45mm to 60mm for the week.
Timing on last week’s rain was ideal, after a mostly dry first three weeks of August. Crops were quick to respond, although western areas will be looking for follow-up rain in the second half of September. Later than normal plantings through most parts of southern Queensland will increase the importance of a soft spring, with many areas not seeded until late June or early July.
Chickpea prices posted further declines after last week’s rain as crop prospects look more certain. New crop chickpeas delivered into Brisbane were down $45 to $755 a tonne. This is well down from last season’s highs of close to $1400/t, during the spikes but still remains well above the average prices before the surge in values over the last 24 months.
Benchmark US wheat futures tumbled late last week, making fresh 10-year lows. However, changes in world cash markets were far less acute.
Nonetheless, world wheat markets are awash with supplies and this is capping any rallies.
The International Grains Council further increased its forecasts for global wheat production last week to 743 million tonnes, 7 million up on last year, but the market looks to have most of this already factored in.
Australian wheat is becoming export competitive at current levels after the sharp decline in local prices as well as the strengthening in Black Sea markets.
Exporters have struggled to make sales into key Asian markets for much of the past 12 months as they switched to cheaper supplies from the Black Sea and Canada. However, reports emerged last week of exporters selling Australian APW and ASW into south east Asian detentions such as Thailand, Vietnam and the Philippines.
Domestic grain prices were mixed last week with stock feed wheat into the Downs up $5 at $228 while F1 feed barley was down $6 at $206. There was some evidence of farmer selling in the old crop markets as they make room for the upcoming harvest.
Sorghum was $1 higher at $204 delivered Downs markets.
Sharp declines in US corn futures last week put pressure on prices early this week. CBOT corn futures tumbled by 5 per cent last week after an annual crop tour through the Corn Belt states confirmed the USDA’s projection of record large yields.
