Traders have largely ignored the recovery in the Australian dollar, instead keeping grain prices elevated, with buyers remaining worried over tight supplies ahead of the new crop harvest, which is still several months away.
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Last week's 6 per cent rally in the value in the local currency would normally weigh heavily on local prices. These concerns were set aside as buyers focus attention on securing adequate grain supplies to get them through to late October when Queensland farmers will start harvesting the 2020 wheat and barley crops.
New crop grain supplies are expected to be abundant with farmers waiting to plant the largest wheat crop in several years after the wet start to the year. But tight old crop supplies in other states, including WA and SA after a surge on old crop export sales, has made it more difficult to secure old crop grain supplies.
Stockfeed wheat prices for a May delivery into the Darling Downs increased by $5 to $485 a tonne, now up $30 in the past four weeks. Barley prices were unchanged at $400/t, having climbed $15 higher in the past month.
New season stocks feed wheat for delivery in December was unchanged at $340/t while barley was $10 higher at $290.
Limited supplies of sorghum, where only a small area was seeded because of the dry spring, is compounding the tightness in the old crop wheat and barley supplies. The delivered Downs sorghum bids were steady at $485, but sellers are scarce.
Tight old crop grain supplies extend into the southern states, with traders saying they are struggling to secure wheat and barley in southern NSW and Victoria. Victorian barley prices have gained $25/t in the past three weeks, as offers disappear.
Australian wheat exports fell to 840,000 tonnes in February, according to the latest government trade data, down from 1.3 million tonnes in January. Wheat exports from WA fell sharply but supplies remain limited after a disappointing harvest.
Concerns that some buyers may have difficulties in managing supplies has prompted bulk handlers CBH and Viterra to publish monthly stocks data. They said the data will allow buyers to make informed buying decisions.
GrainCorp has not released its grain stocks data.
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