WA Market Update – 31/05/2019

Another dry week for Western Australia as planting rains continue to elude the majority of cropping regions. Short term forecasts remain dry but there does appear to be the possibility of a cold front crossing the WA coast next Thursday night; fingers crossed this delivers something of substance.

I no doubt sound like a broken record but the ongoing dry weather is increasing the likelihood of growers cutting their plantings. At this stage you could probably argue Geraldton and Kwinana may be down only 5% on what was expected to go into the ground but fast forward 2 weeks and if we remain in a similar situation then you’d have to think anywhere up to 10 – 15% would be left out. The result of the weather system predicted to come through on June 7 – 9 will likely play a big role in that outcome.

Markets were up sharply again this week as US futures continue their march and dry conditions cause concern locally. Old season wheat prices strengthened, with most grades now being priced around the same level. APW and ASW1 in KWI were $325/MT FIS this week, with ASW1 jumping $29/MT in the last 7 days. Old season feed barley prices are up $15/MT from last week, now at $310/MT FIS Kwinana. New crop values also moved significantly in the right direction with APW1 MG in KWI around $323/MT.