Southern Wheat and Barley Prices Fall Amid Deteriorating Northern Queensland Crops
Wheat and barley prices have fallen in southern regions of Australia due to deteriorating production prospects for crops in northern Queensland. The stellar yield outlook for Victorian and southern New South Wales crops, however, has maintained consumer confidence in supply.
Northern growers have been reluctant to forward sell wheat and barley due to concerns about low testweights from moisture-stressed crops, as well as hopes for stronger prices next year. Sorghum remains the cash sale of choice for those with stocks left on farm in southern Queensland and northern New South Wales.
Growers harvesting chickpeas and wheat in Central Queensland are holding onto their wheat in anticipation of a domestic market lift to above export parity. Crops in pockets of southern Queensland could achieve average yields if the season ends well, but maximum temperatures forecast for early next week may further stress crops, leading some to be grazed or baled.
According to DAS figures, cropped area is down in northern NSW and southern Queensland, but there should still be plenty of crop in NSW overall based on a reasonable season for much of central NSW and a big one in the south. Barley is expected to struggle to get onto stems in the front months of the shipping year due to limited slack stem allocation.