* Tonnes stated are accurate as of Friday morning, 4 December.
CBH Operations Update
Western Australian growers have delivered more than 10 million tonnes of grain into the CBH network after an additional 2.5 million tonnes were received this week.
This surpasses last year's total receivals figure of 9.8 million tonnes, with several weeks of harvest remaining.
Chief Operations Officer Ben Macnamara said while some growers, particularly in the Geraldton Zone, were starting to complete their harvest programs, there was still about 30 per cent of the crop yet to be delivered across the grainbelt.
"The outlook for this year's harvest has improved significantly as growers have progressed through their programs, with many realising greater yields than anticipated," Mr Macnamara said.
"This is a really positive outcome following last year's below average harvest, and we've been able to receive these large volumes faster than ever before.
"We expect deliveries to slowly drop-off in northern parts over the next couple of weeks, while harvest will continue in the Albany and Kwinana South zones over an extended period."
- It has been another week of steady receivals in the Geraldton Zone, with about 454,000 tonnes delivered over the past seven days, taking total receivals to almost 2.2 million tonnes.
- Wheat has made up the majority of receivals.
- Similarly to last week, quality has been good, with some higher proteins coming through and a trend away from ASW to APW.
- Wheat deliveries with higher screenings are likely to enter the system over the next week or so as growers work towards the end of their harvest programs.
- A number of growers within the zone have finished harvesting, and more are expected to wrap-up their programs over the next few days.
- As a result, site opening times will be reviewed as receival volumes drop.
Kwinana North Zone
- It has been another busy week for the Kwinana North Zone, with the weekly receival rate hovering at 644,000 tonnes, taking the zone total to 2.6 million tonnes.
- Some growers received 1-3 millimetres on Monday, slowing down deliveries for half a day.
- Wheat has made up the bulk of receivals, followed by barley.
- Most growers are harvesting wheat, which has so far been of reasonably good quality.
- Site turnaround times continue to improve.
- The weather outlook for the next seven days is positive and another good week of deliveries is expected as the zone reaches the three-quarter mark of its receivals estimate. Initial estimates will likely be exceeded.
Kwinana South Zone
- It has been a challenging week for the Kwinana South Zone, with harvest bans and rain disrupting deliveries.
- To date 1.8 million tonnes received, of which 518,000 tonnes were delivered in the past week.
- Wheat and barley make up the greatest portion of deliveries.
- Quality and yield has continued to exceed expectations.
- Good site turnaround times across the zone.
- Some growers in the north of the zone have completed their harvest programs.
- Large receivals anticipated next week, with good harvesting weather forecast.
- Rainfall between 3-15 millimetres across the Albany Zone stalled harvest for several days this week. Growers ramped-up harvest activity again towards the end of the week.
- The zone has received almost 1.7 million tonnes. Of that, 496,000 tonnes were delivered over the past week.
- Barley has made up the bulk of receivals.
- Quality has been good, with about 40 per cent of barley making malt grade and about 80 per cent of oat deliveries grading as OAT1.
- Wheat quality has been holding up, but weather impacts on the crop will become clearer as more grain comes into the system.
- Unsettled weather has caused issues for Esperance growers throughout the week, with rain and strong winds slowing down harvest progress on Saturday and Monday.
- The zone has received almost 2 million tonnes. Of that, 467,000 tonnes were delivered over the past week.
- Wednesday was our largest receivals day for the season so far, with more than 100,000 tonnes delivered across the zone, nearing the all-time daily receivals record for the zone.
- Barley is making up a large portion of receivals, particularly in the Lakes region, which is putting some pressure on storage availability.
- Many growers are approaching the harvest finishing line, and good weather forecast over the next week will help progress.
The market retreated this week in line with a weaker CBOT, a strong Australian dollar and a larger than anticipated Australian crop. Additionally, the news yesterday that India could export up to 5 million tonnes this year after winning business to Bangladesh at competitive values has had an impact. As a result, grower prices for APW wheat fell by approximately $10 per tonne to $310-312 per tonne free in store (FIS) Kwinana. This is about a $45-$50 per tonne reduction in prices since the end of October and at these levels, there is only select selling from growers as they look to sell other commodities. Internationally, interest remains across Asia, with several flour mills looking to finalise their 2021 first-quarter demand and look to the second quarter. Feed interest for ASW or lower grades has also been seen as it competes well against corn into the Asian region.
Barley prices also retreated over the past week, with grower prices down $8-10 per tonne to $255-260 per tonne FIS Kwinana. Growers have continued to sell barley straight off the harvester, with some players still having shorts to fill. Australian feed barley has ongoing interest both from the Middle East and Asia at current prices, which is required to move the record large Australian barley crop, which is now expected to exceed 13 million tonnes.
The canola market drifted lower this week to $635 per tonne FIS Kwinana with the trade covering shorts and uncertainty surrounding future European demand continuing, as COVID-19 potentially slows biodiesel demand. Growers appear well sold, as attractive prices have encouraged them to forward sell throughout the season, with the remaining tonnes sold at harvest. The canola harvest is almost complete.
Oat prices have been under pressure with grower prices now in the $270-280 per tonne FIS Kwinana, down approximately $8-10 per tonne. A stronger Australian dollar combined with competition from eastern Australia has contributed to lower values.