The agricultural industry is a key player in the economy, with prices for feed wheat and barley remaining stable since mid-December. Growers in the northern region are beginning to harvest an early sorghum crop, following successful cash crops of chickpeas and faba beans. A significant wheat and barley harvest in central and northern New South Wales, and southern Queensland, has been mostly stored on farms due to low bids from up-country consumers.

In Victoria and southern NSW, growers have sold a large portion of their canola, lentils, malting barley, and higher-protein wheat as cash crops. Prices per tonne for various grains in different regions are shown in Table 1.

Sorghum harvest is underway in southern Queensland, with the first crops being harvested on the western Downs. In northern NSW, where in-crop rainfall has been variable, harvest is expected to begin next month. Trade volumes for cereals have been low since Christmas, with some consumer demand for wheat and barley for February and February-March slots.

Despite some rain during harvest, the quality of wheat and barley is generally good. Feed wheat and barley values are gradually increasing, attracting grower sales. While southern Queensland is focusing on a large sorghum crop, the planted area for sorghum in northern NSW is not historically significant.

Growers are hesitant to forward sell sorghum due to the desire for higher prices and concerns about rain delaying harvest or delivery. The strong US dollar and weak Australian dollar are impacting the market, with rising US corn prices driving export demand for Australian sorghum.

In southern NSW, canola has been the primary focus of post-harvest sales, with bids remaining strong. Feed barley and ASW wheat have also seen moderate cash selling, with barley trading at around $270-$280/t. The delivered Riverina consumer market for wheat has been stable, with signs of strengthening.

The quality of grain harvested in southern NSW has been generally good, with lower-spec grain looking for buyers. Most wheat has met milling grades, with few cases of sprouting causing falling numbers readings to drop below 300 seconds.

Overall, the agricultural market is showing signs of stability and growth, with various grains being traded at competitive prices. As growers navigate through harvest and sales, the industry remains resilient and adaptable to market conditions.