Australian Update
Feedgrain Focus: Sorghum lifts as cyclone nears Brisbane. Liz Wells, 6 March 2025. Source: Grain Central
The sorghum market has firmed in response to news that China is imposing a tariff on US sorghum, while wheat and barley price moves in the northern and southern markets have been mixed and moderate.
On the logistics front, Brisbane port facilities have closed ahead of Tropical Cyclone Alfred making landfall, now expected in the early hours of Saturday.
This has suspended bulk deliveries of sorghum, as well as container movements, with exporters hopeful receivals and vessel loading can resume next week.
On the domestic feed front, poultry operations in the wider Brisbane region are taking steps to shore up input and prepared feed supplies ahead of TC Alfred’s arrival.
Operations suspended at port sites
Poultry mills in particular rely on just-in-time supply of imported soymeal out-turned to consumers through Bulk Cargo Services at Pinkenba, near the mouth of the Brisbane River.
As a safety measure ahead of possible storm surges, flooding, and road closures, BCS is closed today and tomorrow, and consumers have sought alternative inputs or sources to tide them over.
On the bulk export front, three terminals are all due to start shipping sorghum cargoes this month, but have suspended deliveries until the TC Alfred system passes.
JSM Bulk Shipping managing director Joel Engelbrecht said the company’s two Pinkenba accumulation sites shut on Monday in order to get 20,000t of sorghum in two bunkers sealed with vacuum-fitted tarps.
JSM also has a site at Wellcamp, west of Toowoomba, which has 40,000t of sorghum on site, and shut yesterday.
“We’ve secured our sites, and shut to make sure our staff had time to get their own homes ready for what’s coming,” Mr Engelbrecht.
On the south side of the river, Wilmar’s QBT facility closed today to grain receivals, and is looking at reopening Monday, conditions permitting.
QBT general manager Brett Tomlinson said a wheat cargo was due to depart this week, but closure of the Port of Brisbane and adjacent facilities to large shipping, again because of safety concerns, has seen the vessel sail south to calmer waters to sit out the storm.
First new-crop sorghum vessels are due out of JSM, loading at the Wagner’s wharf, QBT, and GrainCorp’s Fisherman Islands, also closed today and tomorrow, in the second half of this month.
Bulk sites and feedmills are also standing by for any news on closure of the Gateway Bridge, the main artery to Brisbane’s bulk terminals, which will close once wind speed gets above 90kmh.
At Mt Cotton in Brisbane’ south, Darwalla Milling feeds manager Gary Heidenreich said its own mill, plus a contracted supplier at Clifton on the Darling Downs were working to get extra feed to Darwalla’s farms.
These are located on the Downs, and in the Lockyer and Fassifern valleys, ahead of expected rain and wind.
“It’s all about getting feed to farms so birds don’t run out of feed, and safety,” Mr Heidenreich said.
“There could be flooding, issues with farm access…and high winds that make it dangerous for tipping trailers.”
If the Gateway Bridge closes, grain movements can still be made, but with single-trailer trucks rather than A doubles.
As one of Australia’s biggest poultry producers, Ingham’s has two feedmills in the wider Brisbane region, one at Hemmant near the Brisbane River, and one at Wacol in the city’s outer west.
Both mills are operating today, but are likely to close some time tomorrow, with conditions assessed as required.
Tariff move lifts sorghum
Growers are ready sellers of sorghum at current prices, buoyed by the news that the Chinese Government has imposed retaliatory tariffs on some US commodities, including sorghum.
“Since China whacked a tariff on US sorghum, it’s given us a few bucks to play with,” one trader said.
Ahead of TC Alfred reaching the south-east Qld coast, the trader said consumers in the wider Brisbane region have been ready buyers of wheat and barley to bolster supply of what is shaping up to be three or four weather-affected days.
“If you ask them what price they’d like to buy at, they won’t tell you, but if you put something up there to buy, they’ll take it.”
Southern Queensland’s sorghum harvest is around two-thirds complete, and growers are getting off what they can ahead of rain forecast to arrive from the south as a TC Alfred turns into a tropical low.
Maximum moisture level at receival sites is 13.5 percent, and one trader said harvest is occurring at pace, even on crops at 16pc moisture.
“Growers can dry it themselves if they’ve got the gear, or get it dried elsewhere,” one trader said.
“What they don’t want to have is it sitting in the head with a heap of rain on it and ending up with sprouted grain,” one trader said.
Quality of sorghum harvested to date in Qld and northern New South Wales has been very good, with high test weights helping to boost yields to what for some growers has been their highest ever.
On wheat and barley, prompt trade is thin, with most consumers well covered into next quarter.
Slow going in south
Apart from some prompt demand from consumers, new business is hard to find in the southern market.
While volume heading off farm is expected to pick up in coming weeks as growers look to backload with fertiliser ahead of new-crop planting from April.
Peters Commodities Riverina-based trader Peter Gerhardy said growers are selling little.
“The grain they’ve lined up to take south is already pre sold for March or April delivery,” Mr Gerhardy said.
“There’s certainly not an abundance of grower selling.”
While most NSW and Qld growing areas are forecast to get a soaking in the coming week out of the low expected to develop out of TC Alfred, conditions remain very dry in Victoria and South Australia.
Mr Gerhardy said demand is starting to pop up for barley from people feeding sheep.
“That third-tier market is stepping in a bit.”
Mr Gerhardy said the spread between ASW and SFW had narrowed to single-digit figures.
“It’s only a matter of time before wheat’s wheat in Victoria; there’s only $5-$8/t in it now.”