SA grain price premiums to continue throughout 2022
In a possible fairytale of Goldilocks proportions, South Australian graingrowers might have just the right amount of grain off in their market as opposed to an oversupplied east coast market and a starved international market.
That's the key takeaway from agricultural risk experts Market Check, who noted a current price premium for SA grain sellers - and predicted it would continue throughout the calendar year.
Market Check head of strategy Nick Crundall told Flow's Country Viewpoint listeners on Friday:
"There's a big premium for SA grain over the rest of Australia and that's continued over the last couple of weeks and its getting bigger. There's a lot of exporters trying to front end load the exports out of SA . The crop wasn't as big in a relative sense so there isn't this over supply versus export capacity like there is on the East Coast.
"The East Coast has just too much grain around versus how much it can ship. SA doesn't have as bad a problem and a few guys that have export sales on, that are looking to cover and they're struggling, they're pushing the price up.
"SA will remain a premium over the rest of the country for the rest of 2022, it's just what level of premium because at the moment it's quite a significant premium over NSW and Victoria, its quite substantial."
You can hear the full interview on the FlowNews24 podcast player below:
Mr Cundall outlined current observed prices demonstrating the growing pricing trend:
"SFW delivered Melbourne (is priced recently at) $340-345, ASW $20-$30 over that, H2 over $400 per tonne delivered Melbourne - that's soaking up all the Victorian grain available for delivery and the Riverina is benefiting from that demand point."
"South Australia has the highest prices in Australia, yesterday the H2 was going through in Port Adelaide at $415-416, then you go down to the feed grades that are about $355."