Northern Feed Market Jumps on Dry Conditions as Southern Region Flourishes

The northern Australian feed market has seen an increase in prices due to a lack of rain as crops approach the end of winter. In contrast, the southern region is benefiting from ample subsoil moisture, which is boosting yield prospects and allowing growers to advance their new-crop canola sales.

Wheat export demand appears to be improving, while barley remains the preferred grain in the north. However, a lack of soil moisture in Queensland and northern New South Wales has led to below-average yields, with headers expected to start rolling into wheat crops in Central Qld before the end of August.

At the Australian Grain Industry Conference in Melbourne, growers and traders from the north-west slopes of NSW to the Qld-NSW border plains were discussing the impact of El Niño on their crops. Some farms planted only half their intended winter-crop area due to the late seasonal break, which did not allow for adequate soil moisture.

In the Riverina market, canola is the forward sell of choice, with delivered up-country depot prices reaching $810/t in the past week at some sites. Irrigated cereals are being saved from being grazed out or cut for hay due to improved wheat prices, and water for summer-crop planting in the region is looking scarce and expensive.

Meanwhile, in South Australia, a freeze in demand from Egypt has led growers with faba beans to push them into the domestic market. Barley's discount to wheat has widened to $30/t or more, making it an attractive option for poultry and pig rations.