Australia: strong demand supports stock feed wheat values

Harvest concerns of who would buy the millions of tonnes of feed quality wheat after the wet harvest have faded.

Stock feed wheat prices were up a further $5 to $10 a tonne last week to $345/t delivered into Melbourne while barley was up $15/t to $20/t, to $320/t.

Stock feed wheat bids are now $25/t above the harvest lows with feed barley up more than $30/t.

Feed wheat prices are being well supported through New South Wales at around $285/t on farm, as exporters chase supplies.

These prices are equating to around $345/t delivered Melbourne or $325/t for regional mills.

Grain buyers who were expecting an abundance of feed grain supplies after three-quarters of a near record large NSW wheat harvest struck by torrential rains during harvest are now being forced to pay up for supplies or risk missing out.

It’s a similar situation with barley, where plantings were well down on last year as farmers swung to more profitable canola, and yields came in below pre-harvest expectations.

Domestic feeders are chasing stock feed wheat supplies as it becomes apparent that exporters may have already sold a significant proportions of the downgraded NSW wheat harvest.

China is expected to absorb a significant proportion of the feed wheat exports from NSW this year.

Other Asian feed grain importers have also been active buyers of Australian feed wheat, including the Philippines and South Korea.

China’s appetite for feed grain imports remains strong, although total imports are expected to be down on the 2021 calendar year imports.

China’s corn imports almost tripled from the previous year in 2021 to a record large 28.3 million tonnes. China also imported large volumes of barley, sorghum and feed wheat.

A larger domestic corn crop put pressure on domestic corn prices in China late last year, but they have since recovered as drought conditions threaten production in South America.

Darling Downs farmers have started harvesting what’s expected to be one of the largest crops in several years.

Early yields have been strong with crops coming in at five to six tonnes a hectare and this pattern is expected to continue. Timely planting rains and above average summer rainfall have set the platform for above average yields.

Northern NSW farmers also on track for the largest sorghum harvest in close to a decade on the back of larger plantings and bumper yields.

The Land

Tags: harvest, corn, barley, prices, wheat, yields, feed wheat, supplies