WA Market Update – 16/08/2019

We’ve seen some good falls over the past couple of days and it couldn’t have come at a better time. There have been a few questions surrounding local production in recent weeks after signs of the weather becoming warmer, increasing the potential for yields and production to deteriorate. But rainfall totals of between 5 – 20mm for the majority of the state has kept things advancing and maintains soil moisture levels. Unfortunately, the rain was a bit variable with some growers luckier than others, particularly around the lakes where there were reports of up to 40mm. Some follow up rain prior to the weekend looks likely and if this favourable trend continues for the next month then average to above average crops are very achievable.

WA grower bids fell away this week following the release of the latest USDA report and the bumper US crop. Given the uncertainty surrounding this year’s production, growers are unlikely to sell too much for the time being, particularly if prices continue to edge lower. Kwinana APW was down $7/MT this week to $313/MT FIS with all other wheat grades falling. Barley bids also fell with feed dropping $5/MT to $276/MT. Canola was effectively unchanged and next season’s APW was down $5/MT, back to $300/MT. Although bids were off this week it’s important to note prices still represent good value and those who have confidence in the season seem happy to slowly but surely chip away with small sales.