Local Market Update

 

  • Wet soil conditions having been hampering farmers ability to cultivate ground and plant crops.
  • Damage from pugged pastures from first round grazing on dairy platforms is adding pressure to an already tight 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 $365 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.
  • Procurement issues/changes in milling industry are still an ongoing area of concern for growers.

 

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

Operation Grain Harvest Assist calls for worker reinforcements

A nationwide operation has been launched today, aiming to bolster the supply of local workers to help deliver this year’s bumper grains harvest and relieve pressure on farming communities.

Retired and former Australian Defence Force (ADF) servicemen and women are being motivated and mobilised under Operation Grain Harvest Assist, to answer the call-up and work on grain farms stationed throughout Australia.

The joint-operation aims to recruit willing workers with the transferable skills needed to operate heavy machinery and perform other required jobs during grains harvest, in coming weeks.

Behind the scenes, ADF volunteers are driving the plan’s operations, harvesting communication networks and empowering social media channels, to link their colleagues with farmers and harvest contractors who urgently need workers.

WA Farmers executive manager, policy, advocacy and engagement, Jessica Wallace, said with increased workforce shortages limiting many parts of Australia’s grains supply chain, the defence force initiative to implement Operation Grain Harvest Assist was greatly appreciated and timely.

“The second consecutive year of this global pandemic is presenting many complex challenges to manage for grain producers; especially securing enough workers to harvest and optimise the value of what’s forecast to be a $15 billion grains crop,” she said.

“But it helps ease the burden when major national groups of influence such as the ADF reach out and put their shoulders to the wheel, leading the charge to make a difference on the ground.”

From tanks to farm machinery

Retired Royal Australian Armoured Corps Lt. Colonel, Garry Spencer AM, said communications were a critical element of the operation’s success, in order to give ADF servicemen and women enough time to consider their options and prepare for postings on-farms, in different regional communities.

“We know COVID-19 has greatly reduced the supply of grain harvest workers from overseas, with more than 100,000 fewer backpackers available this year, compared to 2020,” he said.

“That’s why we’ve put our heads together with grains industry leaders and devised a plan of attack that’ll help not only farmers but also benefit our people with the option to get out and work on-farm to gain a sense of satisfaction, and valuable income, at this vital time.

“Driving a tank or piloting aircraft in a military manoeuvre is surely a great segue to working on-farm using heavy machinery such as harvesters with auto-steer, GPS guidance and air-conditioning.”

Two Facebook pages will be managed by volunteer coordinators, with one of them linking workers to harvest jobs posted for farms in WA and SA, and the other for Queensland, NSW and Victoria.

Support and guidance

Mr Spencer said the ADF’s priority was to ensure retired and former ADF servicemen and women received proper support, guidance and advice, through volunteer co-ordinators that’ll be available during the operation.

He said this would ensure proactive management of key issues such as; labour agreements; employment conditions; training programs; accommodation arrangements; and travel eligibility as ‘Essential Workers’, under COVID-19 rules, in different jurisdictions.

Package of measures

Grain Producers Australia (GPA) chair, Andrew Weidemann, said the ADF operation complemented other strategic policy initiatives pursued by GPA to help battle serious labour shortages to deliver short-term and long-term outcomes.

He said this package of proactive measures included urging government to provide tax relief and concessions to incentivise and expand the national army of “grey nomads” to take up work on farms during peak periods such as harvest or seeding.

“GPA is also calling on rural businesses such as stock agents and agronomists to consider the option of allowing staff members to take leave without pay, to work on-farm this harvest,” he said.

“We’re also working with QANTAS again this year, and the Regional Aviation Association of Australia, to link workers stood down due to COVID-19, with farm businesses, to provide them with temporary employment options and utilise their complementary skills.”

GPA is also looking to work with the Federal Government to ensure the newly announced Agricultural Visa is designed to provide media-term and long-term outcomes for the grains industry, via access to skilled workers and multiple entry visa categories.

Feed Wheat Comparison

 

 

Feed Barley Comparison

 

World Update

HIGHLIGHTS

Mainly because of smaller than previously estimated crops of wheat and barley in Canada, Russia and the USA, the forecast for world total grains (wheat and coarse grains) production in 2021/22 is cut by 12m t m/m (month-on-month), to 2,283m, up by 3% y/y (year-on-year). The projection for consumption is reduced by 7m t m/m, mostly linked to lower figures for feeding of wheat and barley amid a tighter supply outlook. Despite weaker than previously envisaged demand, carryovers of wheat and barley are trimmed, taking the total grains stocks projection down by 5m t m/m. At 415m t, global grains trade (Jul/Jun) is placed 4m t lower m/m, including cuts for wheat, maize and barley.

Tied to smaller than anticipated shipments from South American origins to Asia, the forecast for soyabean trade in 2020/21 (Oct/Sep) is cut further, to 166m t, a drop of 3% y/y. Due to downgraded outlooks for the US, Argentina and India, world output in 2021/22 is projected 2m t lower m/m, at 380m, albeit still a new peak. With total use slightly lower m/m, at 376m t (+4% y/y), stocks are raised to 57m (+8%). While the projection for trade is scaled-back, record volumes are still anticipated.

Global rice trade in 2021 is marginally higher m/m, at around 47m t (+3m y/y), on an upgrade for shipments to Asia, including to Bangladesh. Reflecting higher figures for carry-ins and production, the outlook for world supplies in 2021/22 is lifted slightly m/m, feeding through to a 1m t increase for inventories, to 172m (+1m y/y). Global trade in 2022 is little-changed m/m and unchanged y/y.

With strong export price gains for wheat and barley partly offset by falls for rowcrops, the IGC Grains and Oilseeds Index (GOI) increased by 2% m/m.

OVERVIEW

Global total grains (wheat and coarse grains) production in 2021/22 is forecast to climb by 3% y/y, to a record 2,283m t, led by new highs for maize (+75m y/y) and wheat (+8m). Consumption is expected to grow by 2%, including gains for food (+12m t y/y), feed (+30m) and industrial uses (+7m). World stocks of grains are seen contracting for a fifth consecutive year, to a seven-season low of 589m t (-4m y/y), with y/y falls for wheat, barley and millet/triticale only partly offset by slightly larger inventories of maize and rye. At 415m t (-12m y/y), global grains trade (Jul/Jun) is projected to show the first decline in three years, including smaller shipments of wheat (-1m), maize (-10m) and barley (-2m), but an increase for sorghum (+1m).

Global soyabean trade is seen down by 3% y/y in 2020/21 as reduced hog sector profitability contains Chinese demand, with purchases by smaller buyers also impacted by elevated prices and freight costs. World production in 2021/22 is predicted to rise by 5% y/y, to a high of 380m t, on sizeable crops in the three majors, while an uptick in consumption is anticipated on firmer demand from China. World inventories are expected to increase, but US supplies are set to remain tight given outlooks for high local use and exports. Trade is seen up by 3% y/y on Asian demand.

Against the backdrop of demand from buyers in Africa and Asia, global rice trade in 2021 is seen up by 7% y/y, to 47m t, with Indian exports rising sharply to a peak of 18.5m. Tied to bigger harvests in Asia’s key producers, world output in 2021/22 is forecast to increase by 1% y/y, to a peak of 512m t, with consumption and stocks predicted to edge up. While trade in 2022 is likely to be little-changed y/y, the Council expects India’s sales to contract as shipments by Thailand recover amid assumed ample and competitively priced supplies.

MARKET SUMMARY

Lifted by solid increases in wheat and barley export quotations, the IGC GOI rose by 2% m/m.

The IGC GOI wheat sub-Index rallied by 8% m/m, to an eight and a half year high, on mounting concerns about deteriorating crop prospects and poor harvest quality in some key exporters.

Linked almost entirely to a drop in US prices, which turned lower on positive crop tour results and weak ethanol data, the IGC GOI maize sub-Index dipped by 1% m/m.

With mixed trends across the leading suppliers, the IGC GOI rice sub-Index was broadly unchanged m/m.

The IGC GOI soyabeans sub-Index eased by 1%, lightly pressured by improving Midwest crop weather and late-month declines in soyabean oil.

 
 
 
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