Weak southern markets lower Qld grain prices

Weak southern markets lower Qld grain prices

Agribusiness
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Queensland grain markets drifted lower last week with a weaker tone in southern markets and a decline in United States futures.

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Queensland grain markets drifted lower last week with a weaker tone in southern markets and a decline in United States futures.

Stock feed wheat for a delivery in August into the Darling Downs fell $5 to $385 a tonne while new season's wheat was $3 lower at $377.

Old crop feed barley fell $$8 to $395/t delivered into Darling Downs markets with the new crop $4 lower at $350.

Sorghum values remain soft as the Central Queensland harvest gathers pace.

Darling Downs sorghum for an August delivery has fallen by $20/t since the start of the month to $325 to $333 delivered.

On farm bids in Central Queensland are down to $260 to $265/t.

Farmer selling has slowed with the decline in prices.

Table 1: Queensland grain prices. Source: Lloyd George

Table 1: Queensland grain prices. Source: Lloyd George

Weakness in the southern markets weighed on east coast grain prices.

Victorian farmers have started to quit old crop wheat and barley, which is still showing sizeable premiums to the new crop values. Melbourne feed barley bids tumbled $25 to $325/t.

Old crop farmer selling activity in Victoria has escalated in the past two weeks amid the positive outlook for the 2019 harvest after good winter rains.

Sharp declines in United States wheat and corn futures also weighed on local markets.

United States wheat and corn futures slumped by 4-5 per cent for the week as investors reduced risk premiums as Midwest weather turns more favourable for corn pollination in the next few weeks.

Uncertainty over the size of the United States corn crop been supportive for overseas futures markets in recent months.

Corn futures have rallied to five-year highs, drawing wheat futures higher as well.

Northern hemisphere winter wheat harvest is well advanced. The US winter wheat harvest is two-thirds complete. Yields have been good and wheat protein has been higher than expected.

Black Sea winter wheat harvest is also progressing quickly. Russia had harvested about half of its wheat crop at the end of last week. Yields have declined as the harvest has progresses into the Central Districts, although protein levels have been high.

Russia's wheat production estimates have fallen in recent weeks on the lower than expected yields.

Europe's wheat harvest is also advancing quickly. Yields have been in line with expectations.

Exporter quotes for Black Sea wheat have strengthened in July as traders factor in the smaller Russian harvest.

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