Grain prices remain soft while cattle prices kick

Grain prices remain soft while cattle prices kick

Cropping
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Southern Queensland grain prices were steady to softer last week.

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Queensland grain farmers were disappointed to miss out on last week's storms and unsettled weather but were happy to see beneficial rain fall west of the ranges.

Areas around Blackall in the central west saw the best of the rain, receiving upwards of 100mm but totals fell away in nearby areas.

Some areas of the Central Highlands received storm rain with Springsure registering 20mm and 10mm in Clermont. No rain fell in the southern Queensland cropping areas.

Southern Queensland grain prices were steady to softer last week as buying ideas were pulled lower with the rain and weakness in southern markets.

Nearby grain supplies remain tight as buyers wait for the West Australian harvest to crank up and a resumption of the flow of interstate grain supplies.

Table 1: Queensland grain prices. Source: Lloyd George

Table 1: Queensland grain prices. Source: Lloyd George

NSW also recorded widespread rain on the weekend with some western areas recording their best falls in two years.

Southern NSW cropping areas recorded 30mm to 60mm, but the rain is expected to have arrived too late help winter crops where harvest has already started.

Neaby prices for SFW into the Darling Downs was $410-415 a tonne but buyers have been showing higher prices for farmers still holding supplies in central Queensland. Nearby barley was steady at $375 delivered into the Downs.

ASX east coast wheat futures fell $5 to $337 a tonne last week as farmer selling increases in south eastern Australia. Separately, ASX announced they have delisted their sorghum futures contract, which has suffered with limited volumes following consecutive droughts.

Feedlots will be happy to see the rain and hoping it may be a start to the end of the drought plaguing the state for the past 24 months.

They will be also nervous about the strengthening in cattle prices late last week.

Low cattle prices have helped feedlots to remain viable while grain prices climbed above $400 a tonne and a restocker led surge in cattle prices may jeopardise feedlot numbers.

It's been a slow start for Western Australia's grain harvest where rain stalled early progress late last week.

CBH reported they have received about 650,000 tonnes of grain at the end of October, which was reportedly mostly made up of barley and canola.

Traders said wheat protein levels are well up on last year with very little ASW wheat being delivered so far.

In South Australia, warmer weather allowed the grain harvest to gather momentum last week, which resulted in more grain coming to the market.

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