Sorghum quality suffers with rain

Southern Queensland cropping areas received a further 50 to 70 millimetres of rain last week after lighter falls a week earlier. Areas around Goondiwindi recorded upwards of 120mm, which equates to a fifth of the region's annual rainfall in a week.

Northern NSW also received heavy rain with Moree, Narrabri and Gunnedah receiving 40 to 70mm in the past week.

Last week's wet weather will result in major quality problems for the unharvested sorghum crops, many of which were ripe and ready to be cut.

Grain Trade Australia's Sorghum No. 2 standard allows 10 per cent sprouted sorghum with a minimum test weight of 62 kilograms per hectolitre. Traders are reporting widespread quality problems with the harvest before last week's rain with a further significant deterioration expected when harvesting resumes.

Some areas were already experiencing upwards of 30pc sorghum sprouting before last week's rain.

Export quality sorghum prices surged higher as traders raced to secure supplies against overseas sales.

Southern Queensland grain prices had been quiet in recent months with domestic and export buyers comfortable with the large sorghum crop. Markets jumped higher last week as export shorts in sorghum emerged as the rain made it near impossible to access nearby supplies.

Export quality sorghum bids surged $30 higher to $380 delivered into the Darling Downs packers. Bulk exporters are also nervous about the sorghum quality with reports several cargoes are scheduled to be shipped from Brisbane in May.

The full impact of the sorghum quality problems won't be clear for a couple of weeks when harvest resumes.

Recent rain is a problem for sorghum quality, but it provides the perfect start to the winter crop season. Barley and oats plantings will start in the coming weeks, but most growers will wait until May before they start seeding wheat.

Australia exported 2.3 million tonnes of wheat in February, down from 2.6mt in January, recently released government trade data revealed. China was the largest wheat export destination in February with nearly 600,000 tonnes with Indonesia the next largest destination with around 550,000 tonnes.

Cumulative Australian wheat exports from October to February have reached 8.85mt compared to 12.76mt in the same period last year.