Local Market Update

 

  • Cereal harvest has nearly finished with varying results in both quality and yield.
  • Feed barley price is still trading marginally above feed wheat price.
  • Dairy farmers are seeing good autumn pasture growth on milking platforms.
  • PKE spot price is sitting around $340 per tonne ex store.
  • Forward contract PKE for 21/22 season South Island Field Days pricing around $325 per tonne ex store.
  • Industry buyers remain cautious in pricing of 2021 harvest grain.
  • Tentative wheat pricing for 2022 supply contracts is looking similar to that of 2021.

 

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 1 April 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

Grants available to assist farmers with flood recovery

Flood recovery grants of up to $75,000 jointly funded by the Australian and New South Wales Governments are available to assist farmers revive local food and fibre production in flood affected regions.

NSW Farmers president James Jackson said the damage bill from flooding on the north coast, Sydney basin and north west regions was likely to run into hundreds of millions of dollars.

“Our members are starting to count the immense cost of the damage, with a substantial impact on crops, pastures, infrastructure, oyster production and livestock losses,” Mr Jackson said.

“This event has had a major impact on our oyster growers. Most in the north coast region will have significant clean-up costs and no income into the foreseeable future due to stock losses and closed estuaries.”

“Mother nature has thrown it all at our farmers in recent years. Many farmers now face a long flood recovery process after getting through drought, bushfires and a global pandemic.”

“There are now 63 local government areas declared as natural disaster areas due to flooding and over half of these were declared natural disaster areas following the 2019-20 bushfires.”

The primary producer flood recovery grants of up to $75,000 aim to provide short-term targeted assistance for recovery and reinstatement activities, including salvaging crops and repairs to damaged farm infrastructure (e.g. fencing) and equipment.

“The Rural Assistance Authority will administer the grants, with details and eligibility available mid-week,” Mr Jackson said.

“For some, especially fruit growers with permanent plantings, the direct flood impact may not be known until the soil dries out. It will be important that eligibility for these grants recognises the delay of the onset of direct flood impacts across the diversity of farming enterprises.”

The Australian and NSW Governments are also funding clean-up for households, businesses, primary producers and local councils affected by the floods and include both insured and uninsured properties.

National Farmers Federation (NFF) chief executive Tony Mahar said it was too early to determine the exact extent of the flood damage but it was significant.

“Farmers lost livestock, had pastures and infrastructure inundated and were cut off from their communities,” he said.

“It’s an incredibly tough time with many of the affected farmers still recovering from drought.”

Mr Mahar said the NFF was in close contact with NSW Farmers to determine the support farmers would need in the coming weeks and months.

“With this in mind we’ve spoken with the Minister for Agriculture and Natural Disaster, David Littleproud and NSW Agriculture Minister Adam Marshall, both have committed to continue to assist farmers through this difficult time.

“Roads have been particularly hard hit. The NFF stresses that federal, state and local government cooperation is essential to ensure roads are as soon as possible opened and returned to a safe condition.”

In addition to the Federal/State assistance, Rural Aid is also offering a special $1000 emergency payment to farmers impacted by flood. 

Mr Mahar encouraged farmers to visit the NFF’s Farmhub website www.farmhub.org.au for the latest flood support and to access a range of general business and wellbeing resources.

Feed Wheat Comparison

 

 

Feed Barley Comparison

 

World Update

HIGHLIGHTS

Including upgrades for wheat and maize, the forecast for world total grains (wheat and coarse grains) production in 2020/21 is raised by 9m t m/m (month-on-month), to 2,224m, an increase of 2% y/y (year-on-year). Because of increased consumption, projected total grain carryover stocks at the end of 2020/21 are 2m t lower m/m, at 609m (-8m y/y). The outlook for trade (Jul/Jun) is boosted by 4m t m/m, to 416m (+6% y/y), including higher shipments than before of wheat, maize and barley.

The first full set of total grains supply and demand projections for 2021/22 point to record production, at 2,287m t, up by 3% y/y. However, larger supply is expected to be entirely absorbed by higher use, leaving global stocks unchanged y/y.

With upgrades for Brazil and India more than offsetting a reduction for Argentina, global soyabean production in 2020/21 is forecast fractionally higher m/m, at 361m t (+7% y/y). With the net increase in supplies matched by an uprated figure for use, stocks are steady m/m, at 45m t (-7m y/y). Trade is raised slightly, to 170m t, matching the prior year’s record. World harvested area is projected to expand by 4% y/y in 2021/22, as production reaches a high of 383m t. While some replenishment of stocks is anticipated, major exporters’ inventories are likely to remain tight. Trade is predicted to rise by 2% y/y.

The forecast for global rice consumption in 2020/21 is raised m/m, with ending stocks trimmed slightly, to 174m, broadly steady y/y. Amid prospects for increased plantings in key exporters, world production in 2021/22 is seen increasing by 1% y/y, to a peak of 510m t, with total use and inventories potentially at new highs. Trade in 2022 is projected at a high level on African demand.

The IGC Grains and Oilseeds Index (GOI) fell by 3% m/m. All the component sub-Indices weakened m/m, with the largest falls for wheat and barley.

 

OVERVIEW

At a record 2,224m t, world total grains (wheat and coarse grains) production in 2020/21 is expected to be 39m larger y/y, including record harvests of wheat, maize and barley. A fourth consecutive drawdown of world carryover stocks is envisaged, to 609m t, down by 8m y/y entirely owing to a further depletion of maize inventories. Trade is forecast to reach a record 416m t (+22m y/y), with shipments of wheat and maize at records.

The Council's first assessment of world total grains supply and demand in 2021/22 projects a 62m t rise in production, to 2,287m, including new highs for wheat and maize. Increased food, feed and industrial uses are seen lifting total consumption by 54m t y/y, to 2,286m. At 609m t at the end of 2021/22, global stocks are projected to be unchanged y/y. Including reduced shipments of wheat and barley, global trade is seen declining by 6m t y/y, to 410m.

Principally tied to bigger outturns in the US and Brazil, 2020/21 world soyabean production is seen at 361m t (+7% y/y), fractionally short of the 2018/19 record. With consumption expected to advance, stocks are set to fall for a second successive year, with US inventories plunging after a season of heavy exports. Trade is seen steady y/y, at a high of 170m t. With elevated values likely to result in a significant supply response, world acreage could expand by 4% y/y in 2021/22 as output increases to a peak of 383m t. As total use expands, only a modest recovery in stocks is anticipated, with inventories in key exporters remaining thin. Trade is seen at a new high, with China’s imports again exceeding 100m t.

Reflecting bigger crops in exporters, global rice production in 2020/21 is forecast 1% higher y/y, at a peak of 504m t. Including an expansion of feed use, uptake in China is seen edging up as world consumption rises further, while inventories are expected to be little-changed y/y. With firmer buying from importers in Asia and Africa, trade is anticipated to rise by 4% y/y in 2021. Outlooks for 2021/22 remain tentative, yet bigger sowings in Asia could boost global production, with total use and stocks also projected at new peaks. Trade in 2022 is predicted to stay high on African demand.

 

MARKET SUMMARY

With a softer tone across all markets, most notably wheat and barley, the IGC GOI eased by 3% in March, but with average grains and oilseed prices still sharply higher y/y.

The IGC GOI wheat sub-Index dropped by 6% m/m on generally favourable 2021/22 production prospects and signs of a slowdown in nearby export demand.

Partly linked to seasonal pressure in Argentina, the IGC GOI maize sub-Index dipped by 2% m/m.

The IGC GOI rice sub-Index fell by 1%, predominantly on weaker quotations in Thailand, where offers fell on tepid demand and off-season crop harvesting.

Weighed mainly by softer prices in Argentina and Brazil, the IGC GOI soyabeans sub-Index eased by 3% m/m.

 
 
 
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