WA Market Update – 05/07/2019

Following above average rainfall across the majority of WA for the month of June, soil moisture levels have been dramatically bolstered and are now at a stage where growers can be confident at this point of the season. We are still sitting three to four weeks behind normal but good moisture levels will be key for WA grain production from here on in.

As I write (Thursday), a strong cold front is crossing the coast and looks as if it will be dumping another 10 – 25mm across most of the state’s grain growing areas. This will again be very welcomed by most but may actually cause some areas closer to the coast to become a little too wet and could make it difficult to get on to paddocks. An unexpected problem given the small amount of rain prior to June.

WA wheat, barley and canola prices all moved lower this week. Although growers have been buoyed by the recent wet weather, softer grain prices are keeping them on the sidelines for the time being. APW in Kwinana was substantially lower, down $14/MT to $301/MT FIS, whereas the decreases weren’t as significant for other grades. Feed barley was $7/MT lower but malt remained unchanged. Canola too was essentially unchanged, settling at $600/MT in Kwinana. Red crop wheat prices also fell as APW bids dropped to $290/MT in the Kwinana zone.