* Tonnes stated are accurate as of Friday morning, 20 November.
After an interrupted start to the harvest delivery period, warm and dry weather conditions finally allowed for consistent harvesting days this week, pushing total grain receivals towards the five million tonne mark.
Receival volumes increased daily following the most recent rain event, and more than 430,000 tonnes delivered on Thursday resulted in our largest receival day so far this season.
CBH Group Chief Operations Officer Ben Macnamara said he expected daily tonnages to continue to increase next week.
"Given good harvesting conditions look set to endure next week, we're expecting daily receival volumes to significantly surpass what we've seen so far this harvest." Mr Macnamara said.
"It's a relief for many growers, who have been prevented from progressing through the bulk of their harvest programs due to unfavourable weather conditions.
"It's also pleasing to hear reports of boosted yield expectations across most zones and commodities, and so far, minimal quality issues as a result of November rainfall," he said.
"We'll continue to monitor this as increased grain volumes are delivered into the network."
- After three frustrating weeks, the Geraldton is in full-swing following several consistent dry, warm days.
- About 374,000 tonnes delivered over the past seven days, taking total receivals to 1.2 million tonnes.
- Largest receival day so far this season on Tuesday, with more than 80,000 tonnes received.
- Canola deliveries have slowed down, and we have exceeded our canola receival expectation.
- Lupin receivals are flowing in and wheat deliveries increasing.
- At this stage quality is holding up well. Wheat quality has improved, with about 55 per cent of wheat delivered sitting in the ASW1 range for proteins.
Kwinana North Zone
- Growers in the zone received 10-30 millimetres of rain over the weekend, which slowed down deliveries for several days. Harvest activity has since recommenced and accelerated.
- The Kwinana North Zone received 419,000 tonnes this week, taking total deliveries to 1.3 million tonnes.
- The two largest days for the season were on Wednesday and Thursday, with receivals exceeding 105,000 tonnes on each day.
- Wheat and barley have made up the majority of receivals.
- Yields appear to be better than expected, with growers reporting 10-20 per cent higher tonnages than anticipated across all crop types.
- Quality is holding up well at this stage. Falling numbers tests will be carried out as a precaution on wheat deliveries over the next week.
- Good conditions expected over the next 10 days, resulting in extended opening hours at sites where possible.
Kwinana South Zone
- Receival volumes have jumped significantly following improved weather conditions.
- To date 789,000 tonnes received, of which 254,000 tonnes were delivered in the past week.
- Largest receival day for the season on Thursday, with more than 80,000 tonnes delivered across the zone.
- Early indications are that quality is holding up and looking slightly better than expected in some areas.
- Grower reports on yields also indicating that tonnages are better than expected across the board.
- Conditions should allow for harvest activity to increase again next week.
- Receivals increased over the past week, with all sites across the zone open and receiving grain.
- The zone has received 560,000 tonnes so far this harvest. Of that, 289,000 tonnes were delivered over the past week.
- Thursday our largest receivals day for the season so far, with more than 75,000 tonnes delivered across the zone.
- Barley has made up the bulk of receivals, with more wheat starting to come online this week.
- About 40 per cent of barley making malt grade.
- No quality impacts yet evident as a result of rain, however, close monitoring continues as more grain comes into the system.
- Yields have been better than expected considering the amount of rainfall during the growing season.
- As the weather warms up over the next week, receivals are expected to increase across all commodity types.
- The Esperance Zone experienced another week of interruptions due to inclement weather, however receivals jumped towards the end of this week as conditions improved.
- To date 975,000 tonnes received, of which 325,000 tonnes were delivered in the past week.
- Sites across the zone are in full swing, with long hours and close to full staffing.
- Growers are moving from canola and barley to wheat.
- Shark Lake has opened to help with daily receival pressure at Esperance and the increase in wheat tonnages.
- Receivals within the zone now exceeding 80,000 tonnes per day.
- Quality is fine at this point, with a range of proteins received to date.
- Yields are generally much better than growers expected.
- The forecast appears favourable for the next 10-day period, which will see harvest progress significantly over that time.
This week, grower prices have continued to move sideways between $330-340 per tonne free in store (FIS) Kwinana for APW. At these levels, there is limited grower selling as growers look towards the next level of $350 per tonne FIS Kwinana. Growers are also focused on harvesting canola, barley and lupins, and selling directly off the harvester. We are therefore not expecting additional selling until they move into their wheat crops. International demand remains, with interest from Africa, the Middle East and parts of Asia during the week.
The feed barley market firmed this week to $270 per tonne FIS Kwinana, as the trade covered its Saudi Grains Organization (SAGO) tender requirements and additional interest from Asian and Middle Eastern buyers. Grower selling has been reasonable at this level, as growers sell as they deliver. Interest in feed barley looks to continue in the near-term, with Australian feed barley competitive against a number of alternative feed ingredients.
The canola market has been very strong this week, with prices rallying to $665 per tonne FIS Kwinana - the highest levels since March 2020. Grower selling is also relatively strong based on these historically high prices. A very strong oilseed complex internationally has seen canola values in Australia follow as markets look to cover their requirements. Questions remain over what European demand be like as we move into the first quarter of 2021.
Oat prices have been rangebound in the $290-300 per tonne FIS Kwinana for some time, with limited grower selling occurring at this stage. While the oat harvest has commenced, we are not anticipating increased grower selling for a few more weeks when the major oat areas commence their harvest.