New crop sorghum harvest kicked off last week adding further pressure to the already soft grain prices across the Darling Downs and the broader southern Queensland region. It will be a long, drawn-out harvest that will extend for several months, with plantings dates stretching from September into January.
Sorghum bids fell by around $10 to $385 delivered into the Downs as the new crop supplies started to be delivered into storages. Exporters have reported softening in buying interest from China, which accounts for most Australia's sorghum exports.
Upwards of 2.1 million tonnes of Australian sorghum was exported to China in the 12 months to November 2023, representing more than 80 per cent of the total sorghum shipments.
Exports have slowed considerably in recent months on dwindling old crop supplies. Traders are saying China's appetite for additional purchases has also softened as imports of United States sorghum seasonally increase.
Rain has slowed the start of the southern Queensland harvest, with more scattered storms last week. Dalby received upwards of 50 millimetres last week with other parts of the Downs seeing 20-30mm. The stormy weather is keeping later planted sorghum crops well-watered and on track for above average yields.
Central Queensland farmers are preparing for a large sorghum planting with the wet weather.
Grain markets remain broadly subdued across most of Australia, including southern Queensland. SFW and barley was steady at $400-405 delivered into the Darling Downs, sharply lower than the harvest highs.
Most Queensland farmers are well-sold from last year's winter crop but demand is thin for remaining supplies. End users are covered into April and are only buying at the cheaper values.
Exporters continue to show little interest in buying northern wheat, saying it's difficult to market cheaper southern wheat supplies against more competitively priced origins into key Asian markets. Traders are saying that south east Asian importers have diversified wheat imports away from Australia in the past six months to cheaper origins including Russia, Ukraine, Europe, and Canada.
Global wheat markets steadied last week after sharp declines in early January as demand emerged from the Middle East and Africa. Algeria, Egypt, Jordan and Tunisia bought upwards of 1.6 million tonnes of wheat by tender during the week. Wheat from Russia, eastern Europe as well as France is expected to capture most of last week's tender demand.
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