Summer crops have suffered in recent weeks with the blistering heat and drier than normal weather but patchy storms over the weekend brought some relief.
Daily maximum temperatures remained in the high 30s across southern Queensland last week, putting sorghum and cotton crops under further stress. Widespread storms across the Darling Downs dropped temperatures back down to the mid 20s on Sunday as well as delivering some much-needed rain.
As is the nature of storms, rainfall totals were highly variable ranging from upwards of 50mm to nothing is some areas. Macalister recorded about 50mm, following up good falls in recent weeks. Dalby registered 31mm on Sunday, taking the January total up to 90mm.
But not all areas have been this fortunate. Rainfall totals through the Pittsworth and Millmerran areas have missed out on much of the heavier rain during January. There areas recorded less than 10mm on the weekend and January totals are well short of the historical average.
More rain is also needed across Central Queensland. Much of the cotton has already been planted, but farmers are looking for rain to boost soil moisture prior to planting sorghum and mung beans. Scattered storms have provided some patch moisture, but farmers are waiting for some more general rain.
CQ wheat bids fell by $15 to $20 a tonne last week back to local feed grain prices. Hard 2 into Gladstone finished to week $20 lower at $215 and APW down $17 to $210 port. Exporters that were buying wheat against sales have pulled out of the market after covering their needs, which as seen wheat bids tumble back close to sorghum values.
Grain prices through Southern Queensland were steady to firmer last week, on reluctant farmer selling with the summer crop concerns. Stockfeed wheat into the Darling Downs was $4 higher at $226 while F1 feed barley was up $7 at $200. Sorghum was $4 firmer at $223 delivered Downs markets.
APH2 bids into Brisbane jumped by $10 last week to $291 amid a global scarcity of high protein wheat. APH2 is now fetching a $64 premium above APW values compared to about a $20 premium this time last year.
Global wheat prices were close to unchanged last week while oilseeds and feed grain values were firmer on recent erratic weather patterns in Argentina and the impact this may have on summer crop production.
World wheat prices have pushed modestly higher in recent weeks but already heavy supplies are capping gains.
Last week, the International Grains Council (IGC) said the record large world wheat crop in 2016/17 has seen major exporter wheat stocks climb by 8 million tonnes to the highest level since 2009/10.
IGC is forecasting that 17/18 world wheat plantings will be close to unchanged, with larger Black Sea plantings offsetting smaller areas in North America.
The Council preliminary projection for world wheat production in 2017/18 is 735 million tonnes based on their planted area projections and average yield assumptions. This would be 17 million tonnes less that the current year and would be the first decline in world wheat production in five years. Notwithstanding, it would still be the third largest crop ever and is unlikely to lead to any significant fall in the current burdensome world wheat supplies, IGC said.
