Gusty, gale force winds are the latest obstacle to confront Queensland grain farmers in a season that is going from bad to worse.
Blowy weekend weather conditions saw 30 to 50km/hour winds sweep across southern Queensland and the Maranoa. Temperatures climbed into the mid 20s on Saturday ahead of the cool change but the gale force winds persisted until late Sunday.
The winds wreaked havoc in the hinterlands with bushfires.
Wind gusts of 70km/h were recorded in central west NSW with average speeds topping 50km/h through much of Sunday which sent the dust flying.
The moisture sapping winds is the last straw for some farmers who were still hoping for late August rains to help salvage crops with the hope of recouping next year’s planting seed.
Longer term weather outlooks remain pessimistic with the Bureau of Meteorology flagging likely drier than normal weather for spring. Last week the bureau said we are likely to see a drier than normal spring across most of eastern Australia and this will be accompanied by warmer than normal temperatures. The bureau said there was a 50 per cent chance of an El Nino developing in the coming months.
Soaring grain price has done little to curb domestic grain demand.
In its latest quarterly survey of feedlots, the Australia’s Lotfeeders Association reported that cattle on feed numbers in the March to June quarter climbed 9pc to a record large 1.12 million head. Queensland feedlot numbers jumped by 12pc to around 630,000 head. NSW feedlot numbers were also substantially higher.
ALFA president Tess Herbert said that the unprecedented numbers of cattle on feed was due to the continued demand for quality Australian beef and the deteriorating seasonal conditions.
Feedlot operators are saying cheaper cattle prices has helped offset steep increases in the grain price. Last week the Eastern Young Cattle Indicator fell to 450c/kg. Cattle prices are down 20pc down on last year as the relentless drought forces farmers are forced to sell livestock.
Mindsets for grain farmers has already turned to managing the drought conditions has best they can and plans when the rains finally return. Darling Downs farmers will be ready to plant a massive sorghum crop, but this will require significant spring rains to wet the parched black soil plains.
Planting seed retailers are already reporting farmer inquiries for sorghum.
Local markets are starting to show signs of stabilisation with no major changes in the cash markets in the past week. Traders ignored the volatility in the US futures, instead keeping farmer bids close to unchanged despite the early week selloff in Chicago.
The Brisbane market has held in the $440 to $445 range for the past couple of weeks with the flow of instead grain shipments now capping prices. Darling Downs stocks feed wheat prices were quoted at $450 with reports.
US grain futures were sold lower early last week on follow through selling following the bearish USDA report where they flagged bumper summer crop yields. Wheat futures ended the week higher after reports emerged that Russia may cap export volumes.