In a sign of the growing linkages between southern Queensland and Australia's major grain export state, Darling Downs new crop wheat prices softened last week after general rains pushed into West Australian cropping areas.
Prices for new season stockfeed wheat delivered into the Darling Downs fell $5-10 a tonne last week after the WA rain and a general softening in US wheat futures.
New crop feed wheat into the Darling Downs is around $385 while barley is steady at $390.
Traders reported that Darling Downs feedlots have already started to secure small volumes of new crop wheat and barley from traders that will be sourced from WA.
Recent widespread rain across WA has allowed farmers to seed all the remaining wheat and barley crops, which looked unlikely in late May.
Above average June rainfall put WA farmers back on track for a reasonable year.
Some of the driest have already recorded more than 70mm for the month with another round of showers forecast later this week.
Old crop barley prices have jumped by $10-15 to $420 delivered Downs on trader short covering.
Sharp declines in US wheat and corn futures also weighed on northern grain markets last week.
US wheat and corn futures tumbled by 3-5 per cent after making rally highs early in the week as weather forecasts turned drier and warmer, which will allow for late planting and benefit crops.
US grain futures soared 30-35pc higher in May and early June as excessive rain stopped farmers from planting corn and threatened the quality of the wheat harvest.
In a direct parallel to Australia's falling wheat exports in 2018/19, high prices have seen export demand for US grains plummet in recent weeks as overseas buyers seeks out cheaper wheat and corn supplies.
The Australian Bureau of Agricultural and Resource Economics reduced its wheat exports forecast from 14.2 million tonnes in March to 11.7mt on June 17 as drought persists in Queensland and NSW.
Prospects for the Queensland and northern NSW winter grain harvest remains clouded as farmers continue to struggle with the prolonged drought.
Patchy autumns storms allowed for a partial planting in the western Downs and south to Goondiwindi, but crops have struggled since with the warmer than normal temperatures and lack of any substantial follow-up rain. Isolated storms and showers are offering partial relief.
- Details: 0428 116 438 or lloyd@agscientia.com.au
