Please note: This will be the final Harvest Report for the 2020-21 harvest. Further harvest information will be available upon request.
* Tonnes stated are accurate as of Friday morning, 18 December.
CBH Operations Update
Western Australian growers have delivered more than 14 million tonnes of grain into the CBH network, passing the 5-year receivals average in the face of challenging seasonal conditions.
Chief Operations Officer Ben Macnamara said while there was still grain to be delivered, the 2020-21 crop had already surpassed expectations and was now above the 5-year receivals average of 13.9 million tonnes.
"For Western Australian growers to produce an above-average crop in a year when rainfall and availability to subsoil moisture has been well below-average is a remarkable achievement," Mr Macnamara said.
"It's a testament to the advanced and innovative farming practices adopted by our growers, and the resilience of our grain varieties.
"It's a particularly pleasing result after a difficult season last year, and some welcome news to finish 2020."
Mr Macnamara said several sites would close for the season over the next fortnight as receivals continued to taper-off.
"I'd like to wish growers who are finishing their programs a safe and smooth end to the harvest period, and all WA growers an enjoyable and relaxing festive season."
- The Geraldton Zone received 207,000 tonnes for the week, taking total receivals to more than 2.7 million tonnes.
- Overall it has been a positive season for growers, who have seen yield expectations exceeded. The initial receivals estimate for the zone has been surpassed.
- Wheat has made up more than 70 per cent of receivals, with lupins, canola and barley making up the remaining tonnes.
- Quality has been very good overall.
Kwinana North Zone
- The Kwinana North Zone has received 347,000 tonnes over the past 7 days, bringing the season total for the zone to more than 3.4 million tonnes.
- Wheat has made up more than 70 per cent of receivals, with barley, canola, oats and lupins making up the remaining tonnes.
- Quality remains good, particularly given the significant rainfall over the harvest period.
- The majority of growers across the zone are expected to be finished harvest by Christmas, with only a few continuing in the new year.
- Several sites are beginning to close as growers finish their harvest programs.
Kwinana South Zone
- Grain deliveries have slowed down as growers come to the end of their harvest programs, with 298,000 tonnes received over the past week.
- Total receivals sit at about 2.6 million tonnes.
- Wheat has made up more than 40 per cent of receivals, with barley, canola, oats and lupins making up the remaining tonnes.
- Remaining deliveries are predominantly wheat.
- Quality remains good across the zone.
- Site cycle times are very good across the zone.
- The CBH team is working with growers as the season wraps-up and sites begin to close for this harvest.
- Several rain events slowed harvest receivals throughout the week.
- The Albany Zone total is now sitting at more than 2.7 million tonnes, after receiving 437,000 tonnes over the past seven days.
- Barley has made up more than 40 per cent of receivals, with wheat, canola, oats and lupins making up the remaining tonnes.
- ASW has made up the bulk of wheat deliveries.
- There are some areas of the zone where quality has become more variable. This will be closely monitored.
- The majority of growers in northern areas of the zone are finishing harvest, with most southern growers expecting to complete their programs post-Christmas or early in the new year if there are favourable harvesting conditions.
- Several sites have started to fill and work is underway to outload grain to create more space for growers.
- Harvest is drawing to a close in the Esperance Zone, with most growers now finished. Most deliveries remaining are from on-farm storage.
- Deliveries for the week totalled 177,000 tonnes, taking the season total to more than 2.5 million tonnes.
- Wheat has made almost 50 per cent of receivals, with barley, canola, field peas and lupins making up the remaining tonnes.
- Sites will be closing over the coming days as deliveries taper-off. Most sites are expected to be closed by Christmas, with only Esperance remaining open after the break.
The Western Australian wheat harvest is approximately 85-90 per cent complete, with the majority of the remaining crop in the lower Kwinana and Albany zones. Growers have slowed down their selling this week as the grower market strengthens, with prices up $5 per tonne to $322 per tonne free in store Kwinana. Over the past 10 days we have seen prices lift $20 per tonne on the back of Russia introducing an export tax from February 2021. The export tax will remain in place until the Russian new crop in June/July, giving Australia the opportunity to capture demand during the first half of the year. The Australian trade is indicating is has sold-out for the first quarter of 2021, with some also sold-out to May, demonstrating positive end-user demand. With the Western Australian crop looking to exceed 9 million tonnes, the Australian crop is now expected to be closer to 35 million tonnes, the largest since 2016-17.
The barley market traded sideways this week as the trade saw limited end-user demand and a lack of grower interest in selling additional quantities. This week, grower prices for feed hovered around $260 per tonne free in store Kwinana and showed little sign of breaking out in either direction. A few quiet weeks are anticipated as growers wrap-up harvest and look to go on holidays. In addition, most end-users are covered for the first quarter of 2021, so may take a break until the New Year.
Canola firmed this week with grower prices ending the week at $635 per tonne free in store Kwinana. While prices are still some way from the $670 per tonne paid earlier in November, values have stopped drifting lower. Strong demand for vegetable oils, particularly in China, is seeing a overseas crushers in Canada, the Middle East and potentially Europe re-directing oil stocks to China at very attractive margins. While this demand remains, we anticipate prices will stay relatively buoyant in the short-term.
Prices drifted sideways this week around $275 per tonne free in store Kwinana, as both domestic end-users and exporters fill their short-term demand. Competition from eastern Australia remains, however logistical constraints along the east coast are likely to be favourable for demand from Western Australia.