Here we are mid-November, with harvest testing grower’s patience Australia wide this year! Firstly, a lack of rainfall through QLD, NSW and some of SA created a fairly substantial drought, this has created a domestic premium particularly in higher grades of wheat on rail sites throughout the Mid North for early harvested grain to be railed to NSW. Last week WA had hail in the Esperance zone, frost through VIC and excessive rain through VIC/NSW. This has damaged some pulse, canola and cereal crops about to be harvested.
The Indian government has also applied a higher import tax on peas, resulting in buyers losing their appetite overnight. Lentils have been in little demand also, and patience will be required in the hope of higher pricing. Shipping is heavily booked in Port Adelaide and Port Lincoln, with Giles and Wallaroo having average shipping. Thevenard has currently one slot booked (not ideal).
On a positive note, the early harvest report from the Mid North, Yorke Peninsula and Eyre Peninsula districts have the quality grades coming in this year. H1, H2, Malt Barley, FB1. Most growers are pleasantly surprised at yield vs. growing season rainfall, and pleased with the quality. As growers sell off mainly barley, canola and wheat to cover cash flow short time, it will be interesting to watch the Basis Value. It is still currently at very high levels compared to past seasons, will it stay at current levels? I don’t think so.