* Tonnes stated are accurate as of Friday morning, 13 November.
CBH Operations Update
Lingering wet weather conditions over large portions of the grainbelt have continued to disrupt the progress of harvest over the past week,
Several rain events slowed down the rate of harvest deliveries, with 1.2 million tonnes received throughout the week taking total deliveries to 3.2 million tonnes. This is a similar total to this time last year, despite a larger crop expected this season.
Chief Operations Officer Ben Macnamara said so far, about 40 per cent of deliveries were made up of barley, while wheat accounted for about 25 per cent.
"It has been a frustrating start to the harvest period for growers and our Operations team, but we're hoping conditions over the next week will allow growers to get harvesting, and deliveries to increase into our sites," Mr Macnamara said.
"We'll continue to monitor grain receivals and liaise with growers to make sure we keep offering the service they need, when they need it."
- The Geraldton Zone has experienced another slow week following more rainfall in the region, with some growers receiving up to 14 millimetres (mm).
- About 305,000 tonnes delivered over the past seven days, which is well-below average levels compared to this time in previous years.
- Total zone receivals at 839,000 tonnes.
- At this stage, quality has held up but there could be some slight deterioration in the form of falling numbers or stained grain in some wheat grades due to rain.
- Wheat has made up the bulk of receivals.
- Receivals should start to ramp up soon, with favourable harvest conditions expected over the next 10 days.
Kwinana North Zone
- It has been another frustrating week for growers, with rainfall across the whole zone on Monday and falls of between 5mm and 30mm.
- The Kwinana North Zone has received 280,000 tonnes this week, taking total deliveries to 906,000 tonnes.
- Most growers have been harvesting lupins and canola over the past week given the cool conditions.
- Barley has made up the majority of receivals.
- Wheat received so far has been of mostly good quality, but there are some parts of the zone seeing high screenings.
- An increase in deliveries expected next week as wet weather clears.
Kwinana South Zone
- The Kwinana South Zone was starting to ramp up harvest last weekend, but widespread rain across the region slowed receivals dramatically.
- To date 535,000 tonnes received, of which 243,000 tonnes were delivered in the past week.
- Harvest in northern and eastern parts of the zone is now well underway, however due to consistent rain, growers in southern areas are still yet to get a real start.
- Early indications are that quality is holding up and looking slightly better than expected in some areas.
- We have now opened 23 of our 26 sites across the zone.
- Based on the current forecast, conditions should allow for harvest activity to increase again by the middle of next week.
- It has been a stop-start week for growers, who delivered some grain last weekend before they were again interrupted by rain early in the week. Warm conditions mid-week saw growers return to their headers, but wet weather towards the end of this week may slow things down again.
- The zone has received 271,000 tonnes so far this harvest, with 131,000 tonnes delivered over the past week.
- Barley quality has been good so far, with about 30 per cent of deliveries making malt grade.
- About 75 per cent of oats delivered have been grading OAT1.
- So far, grain quality has been holding up despite the rain. We'll have a clearer view of its impact over the next week as more grain comes into the system.
- Wheat deliveries have started to come online in the north of the zone, while southern sites are receiving canola and some barley and oats.
- The Esperance Zone has had another challenging week, with widespread showers mid-week bringing activity to a standstill for a few days.
- To date 650,000 tonnes received, of which 246,000 tonnes were delivered in the past week.
- A front on Tuesday brought strong winds, which has resulted in reports of damage to crops.
- Most deliveries consist of canola and barley. Quality to date has been good.
- Turnaround times at port have been longer than hoped due to large volumes of canola and feed barley, and some generator faults which are now resolved. The port is also full until shipping commences tonight.
- Wet weather may impact deliveries again early next week. Expecting some warmer weather after that, which will result in a higher volume of receivals and an increase in wheat deliveries coming into the system.
Grower selling has been slow as growers wait to assess quality following a slowing in harvest as a result of intermittent rain in Western Australia this week. International interest remains for the first quarter of 2021, with Australian wheat now pricing into markets including east Africa and Saudi Arabia. This is a first for some years, and reflects the larger crop expected in Australia and higher Black Sea values. However, grower prices were sideways this week with APW1 in the mid A$330s per tonne free in store Kwinana. Wheat quality across Australia will be watched closely over the coming weeks, with rainfall across the nation creating some concerns across the market.
The barley market fell A$10 per tonne at the beginning of the week as grower selling and limited international interest resulted in a softening market. The announcement by Saudi Grains Organization (SAGO) on Thursday that it will be tendering for 720,000 tonnes of barley for January and February 2021 arrival saw the market increase slightly, ending the week between $266-270 per tonne free in store Kwinana. In addition to this, SAGO has advised that barley purchases will revert back to private importers and SAGO will no longer be holding barley tenders in the near future. This change will not necessarily impact demand.
The canola market continued to climb as the slowing of harvest saw the trade quickly look to secure canola for early vessels expected to load in November and December. This has seen prices rally A$20 per tonne since early November, with grower values at A$650-660.00 per tonne free in store Kwinana. However, once the trade has secured supplies, the market is expected to move back closer to export parity. Concerns on demand remain, with major European countries in COVID-19 lockdown.
Oat prices continue to hover around the A$290-300 per tonne free in store Kwinana, with limited selling interest from growers to date. A number of growers will wait until they have harvested and delivered before selling, which is still some weeks away in the major oat growing regions.