Queensland sorghum values continue to climb, as domestic feeders boost inclusions into animal rations and the export pace gathers momentum.
Cheaper prices relative to wheat and barley have seen more of the state's feed sector increase the volume of sorghum used in diets, as they seek cheaper feed grains.
Feedlots are generally reluctant to utilise sorghum unless it's at a sizable discount to wheat and barley because of the negative impact it has on cattle diets.
However, the recent hike in wheat and barley values is changing this.
Sorghum prices increased by about $10 last week to $390 delivered into the Darling Downs.
This is well up from the lows of around $300 a few months ago, but still more than $100 below the current $500 plus feeders are currently paying for wheat and barley.
Wheat and barley prices into the Downs are holding firm as buyers struggle to keep up supplies amid truck shortages that slow grain movements into Brisbane and the broader south-east Queensland.
Barley remains difficult to access, with most of the supplies now being trucked from Central Western NSW.
Global markets were modestly lower last week as the rally in US futures runs out of steam.
However, global cash markets remain well supported amid the tight global supplies stemming from the war in Ukraine, coupled with weather concerns in North America and Europe.
Excessive rain is hampering spring wheat planting in the US Northern Plains.
This is the same area that battled a severe drought last year.
On the other side of the Atlantic Ocean, European crops are struggling with ongoing dry, warm weather.
Analysts are already lowering Europe's 2022 wheat production forecasts, with harvest due to start in the coming weeks.
Russia is shaping up for a record large wheat harvest.
However, sanctions and the lack of shipping capacity prepared to sail into the Black Sea will restrict market access.
Russia's agriculture minister said they might start building more vessels for grain exports as they move to combat the difficulties in shipping grain from the Black Sea, as the war with Ukraine rages on.
Farmers are optimistic about the outlook for the 2022 season with the good start and exceptional prices.
Extended weather outlooks remain favourable, with the Bureau of Meteorology forecasting a wetter than usual winter for eastern Australia.
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