Preparations are well advanced for a huge Queensland winter crop planting as farmers take full advantage of the wet start to the 2020 season.
Farmer confidence has surged with the wet start to the year and aided by the recent sharp decline in the values of the Australian dollar. A recent survey by Rabobank Australia indicated one of the biggest bounces in farmer confidence in 20 years, despite the demand uncertainties associated with the coronavirus pandemic.
Upwards of two years of drought has drained farmer finances and they are in desperate need of a good cropping year to lower debt levels. Many say they are preparing to plant a larger than normal winter crop area, having sold most of their livestock due to the drought and in need of cash flow.
All the signs are pointing to a massive lift in winter crop plantings across Queensland and NSW, the states hit hardest by the drought. Most Queensland cropping areas have received upwards of 300mm of rain since the start of the year, which has recharged soil moisture reserves before winter crop planting in a few weeks.
It's a similar situation in NSW, where most of the state's cropping areas have received a general 250mm to 350mm of rain since January. Widespread rain across NSW in the past week will allow early wheat and barley planting to start once paddocks dry out.
Medium-term weather outlooks are promising, which would be conducive for a favourable cropping season. In its latest climate outlook overview, the Bureau of Meteorology said April was likely to be wetter than average for most of Australia's major cropping areas. Similarly, for the three months from April to June, wetter than average conditions were likely to persist, it said.
Old crop grain prices across Australia remain well supported, but new crop prices eased last week after the widespread rain across much of NSW and Victoria.
Old crop wheat prices continue to firm on tight supplies while new crop prices fell.
Stockfeed wheat into to Darling Downs was steady at $480 a tonne while bids in south eastern Australia jumped $10-15/t. New crop stockfeed wheat bids into the Downs were $340, down $15 from last week. New crop feed barley bids dropped $30 to $280. Old crop feed barley into the Downs was steady at $400/t.