Local Market Update

 

  • With drier conditions spring planting is well underway.
  • Damage from pugged pastures and colder than expected weather is still adding pressure to early season feed supply, leading to dairy farmers to look to supplement feeds to meet shortfalls. The increased demand has led to price rises on most brought in feeds.
  • PKE spot price is sitting around $360 per tonne ex store.
  • Industry buyers are maintaining an interest in securing grain for the remainder of 2021.
  • Feed wheat pricing for 2022 supply contracts looking around $25/t up on 2021 level.

 

Ruralco are always looking for grain to supply a wide range of end users. Drop in your sample at any Ruralco Store, or call the Ruralco Customer Service Centre on 0800 787 256 to arrange sample bags or pick up. For queries about free or uncontracted grain that you would like to sell please contact the Ruralco Seed Team, or request a call back below.

 

Request a Call back

 

Canterbury Growers Pricing Per Tonne*

 

Import Pricing Per Tonne*

*Pricing at 29 August 2021.

Meet Our Experts

Craig Rodgers

GROUP MANAGER ON FARM SALES

@: Craig.Rodgers@ruralco.co.nz
Ph: 027 495 2029

 

John Scott

GRAIN & SEED CO-ORDINATOR

@: John.Scott@ruralco.co.nz
Ph: 027 227 7048

 

Jack Dudley

GRAIN & SEED CO-ORDINATOR

@: Jack.dudley@ruralco.co.nz
Ph: 027 238 9014

 

Australian Update

State lockdowns pull handbrake on bumper harvest

Continuing COVID border restrictions are making life difficult for farmers and harvest workers at the start of a bumper season, according to NSW Farmers.

For the second year in a row, farmers are dealing with having to run harvest with limited access to workers and COVID testing facilities that have limited hours of operation.

NSW Farmers Grains Committee chair Justin Everitt said there needed to be a coordinated effort from governments to make sure the season wasn’t wasted.

“We understand there’s a lot of fear and hesitancy around COVID, but this is the second year now that we’ve had fields chock full of crops and state borders getting in the way of harvest,” Mr Everitt said.

“We’re not talking about bringing all of Sydney to country Victoria or outback Queensland, this is a relatively small number of regional workers who need to go back and forth across the border to get these crops in on time.

“It’s time the politicians put their differences aside and put in place some common-sense arrangements or we’ll see a man-made disaster unfold across the industry.”

Growers in the north of the state have been reporting COVID testing sites either aren’t located in the right spots or aren’t open at appropriate times, and the need to line up for testing every few days is putting people off coming across the border for work.

“NSW Farmers has been getting calls about harvest workers having to deal with inconsistent rules at the borders,” Mr Everitt said. “In the north, a lack of resources at the border crossings at Boggabilla, Mungindi and Boomi will lead to unacceptable delays.

“What’s more, harvest is a 24/7 process, but some of these testing centres are only open from 9am to 3pm. “The trucks will be bumper to bumper this harvest, and any delays will be very costly to everyone involved."

Feed Wheat Comparison

 

 

Feed Barley Comparison

 

World Update

Highlights

Including larger than previously predicted maize and sorghum harvests, but with cuts for wheat, barley and oats, the forecast for world total grains (wheat and coarse grains) production in 2021/22 is 5m t higher m/m (month-on-month), at 2,289m, up by 3% y/y (year-on-year). Given larger than previously estimated opening stocks and increased production, and with the figure for consumption unchanged m/m, the outlook for global stocks at the end of 2021/22 is boosted by 10m t m/m, mainly for maize. Including increased wheat shipments, the forecast for global total grains trade (Jul/Jun) is up by 2m t m/m, to 416m.

There are few significant changes to the Council’s outlook for soyabean supply and demand in 2021/22, with bigger harvests in the US and Brazil expected to underpin record production, seen unchanged m/m, at 380m t (+5% y/y), due to offsetting adjustments for Argentina and the US. Projections for total use and trade are maintained at new peaks.

Despite a further upgrade for Chinese feed demand, global rice consumption in 2020/21 is placed 3m t lower m/m to reflect a downgrade for India, linked to historic data revisions. Taking account of a higher figure for carry-ins, the forecast for stocks is lifted by 8m t m/m. This feeds through to an increased projection of world reserves in 2021/22, raised by 10m t m/m, to a peak of 182m (+3m y/y). Trade in 2022 is predicted 1m t higher m/m, at 48m (+1m).

After two-sided movements since the last GMR, the IGC Grains and Oilseeds Index (GOI) posted a modest net gain.

OVERVIEW

With a sharp rise in maize output anticipated, but with increases for wheat and sorghum as well, global total grains (wheat and coarse grains) production in 2021/22 is forecast to climb by 3% y/y, to 2,289m t. Led by a jump in maize use amid more ample supplies, world total grains consumption is expected to expand by 3%, to 2,288m t. After four successive annual contractions, world stocks are expected to broadly stabilise, as falls for wheat, barley and oats are seen being balanced by build-ups of maize, sorghum and rye. Grains trade is predicted to shrink by 11m t y/y, to 416m, mainly linked to smaller shipments of maize and barley.

In a season of reduced buying interest from China, world soyabean trade in 2020/21 is set to contract by 2% y/y. Tied to expectations for sizeable harvests in key producers, 2021/22 world output is predicted to increase by 5% y/y, to 380m t. Assuming solid demand growth in Asia and the Americas, global use is seen at a new peak (+4%), while stocks could accumulate further. However, major exporters’ inventories are anticipated to remain tight given limited potential for gains in the US amid elevated local and international demand. Bigger shipments to Asia are projected to support a 3% expansion of trade.

Solid demand from buyers in Asia and Africa is expected to boost rice trade to a peak of 47m t in 2021, with India potentially taking a 40% share of exports. Global output in 2021/22 is seen rising by 1% y/y, to a record of 512m t, principally on bigger harvests in Asia. Consumption is set to expand on population gains, albeit as uptake in China likely retreats on lower feed use, while stocks are seen increasing by 3m t y/y, mostly on accumulation in India. Global trade in 2022 is predicted to edge up, with Thailand potentially reclaiming market share from India.

MARKET SUMMARY

The IGC GOI firmed by 1% m/m, boosted mainly by gains in average wheat, maize and barley export quotations.

Underpinned by persistent concerns about production prospects in some major northern hemisphere exporters, the IGC GOI wheat sub-Index rose by 3% m/m. The IGC GOI maize sub-Index increased by 2%, mainly on firmer US values, buoyed by Gulf port capacity constraints and reports of disappointing early yields in some states.

The IGC GOI rice sub-Index held mostly steady, with mixed market movements at key origins. The IGC GOI soyabeans sub-Index was stable m/m, as modest losses in US quotations, tied mainly to looming harvest pressure, was balanced by gains in Argentina.

 
 
 
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