Australian bumper harvest continues under mixed weather

  • Spanish Market: Agriculture
  • 21/11/22

Australia's agricultural sector remains in a less-than-optimal position for managing exports of a forecast record crop, as canola, barley and wheat deliveries from fields to ports place the logistics chain under strain early on in a delayed harvest season.

Lower rainfall in Australia's eastern states allowed grain harvesting and deliveries to exporters to speed up last week, while less favourable weather in the west led to slower fieldwork and some crop loss.

Trading firm GrainCorp had received a total 1.7mn t of grain at its Queensland, New South Wales (NSW) and Victoria sites as of today, including 570,000t just in the past week, according to the firm's latest harvest update.

Harvesting resumed at pace in northern NSW, where severe flooding had closed roads and induced a two-week break to fieldwork earlier in the month. More than half of GrainCorp's 389,000t of grain receipts from NSW this campaign arrived in the past week alone.

Parts of Queensland also benefited from improved weather. GrainCorp's grain receipts for the region stood at 1.3mn t, with 340,000t arriving over 15-21 November.

But highly unfavourable weather earlier in the season continued to put a strain on harvest logistics as canola, barley and wheat arrived from the fields all at once. And such conditions are set to continue, with the Bureau of Meteorology forecasting above-average rainfall into February next year.

Rain continued to slow harvest progress in southern NSW, where activity was largely limited to canola crops. In Victoria, GrainCorp's canola and barley receipts dwarfed wheat, with total grain receipts at just 16,000t this campaign, including 11,000t in the past week.

Rain slows harvest in WA

Rain over 15-21 November slowed harvesting in parts of Western Australia (WA), which had avoided the worst of heavy rainfall faced by regions further east and is mostly forecast below-median rainfall in the coming months.

Trading firm CBH had received 3.9mn t of grain across its WA sites as of Sunday, with almost two fifths of the volume arriving in the week ending Sunday, according to the firm's latest harvest update.

Progress was particularly strong near Kwinana, despite many growers losing about two days that week to rain. Activity was mostly focused around the canola crop, with wheat and barley indicating good quality but not expected to reach peak harvest pace until about six weeks from now.

In Albany and Esperance, high moisture levels kept the harvest pace slow, with most deliveries containing canola and barley.

In contrast, wheat made up the majority of Geraldton's latest receipts. Producers in this northern region indicated protein levels above expectations, with yields also high.

But there were reports of hail across the central wheatbelt, leading to some crop damage.

And WA's overall harvest pace continued to trail 2021-22's crop, with a total of 4.7mn t of grain harvested at the same time last year. The slower start could put harvest logistics under greater pressure along the export chain in the coming weeks, and CBH is encouraging growers to deliver grain directly to ports when possible.

Crop output in WA for 2022-23 is set to surpass last year's harvest record of 23.1mn t to reach 23.97mn t.


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01/05/24

US southbound barge demand falls off earlier than usual

US southbound barge demand falls off earlier than usual

Houston, 1 May (Argus) — Southbound barge rates in the US have fallen on unseasonably low demand because of increased competition in the international grain market. Rates for voyages down river have deteriorated to "unsustainable" levels, said American Commercial Barge Line. Southbound rates declined in April to an average tariff of 284pc across all rivers this April, according to the US Department of Agriculture (USDA), which is below breakeven levels for many barge carriers. Rates typically do not fall below a 300pc tariff until May or June. Southbound freight values for May are expected to hold steady or move lower, said sources this week. Southbound activity has increased recently because of the low rates, but not enough to push prices up. The US has already sold 84pc of its forecast corn exports and 89pc of forecast soybean exports with only five months left until the end of the corn and soybean marketing year, according to the USDA. US corn and soybean prices have come down since the beginning of the year in order to stay competitive with other origins. The USDA lowered its forecast for US soybean exports by 545,000t in its April report as soybeans from Brazil and Argentina were more competitively priced. US farmers are holding onto more of their harvest from last year because of low crop prices, curbing exports. Prompt CBOT corn futures averaged $435/bushel in April, down 34pc from April 2023. Weak southbound demand could last until fall when the US enters harvest season and exports ramp up southbound barge demand. Major agriculture-producing countries such as Argentina and Brazil are expected to export their grain harvest before the US. Brazil has finished planting corn on time . unlike last year. The US may face less competition from Brazil in the fall as a result. Carriers are tying up barges earlier than usual to avoid losses on southbound barge voyages. Carriers that have already parked their barges will take their time re-entering the market unless tariffs become profitable again. The carriers who remain on the river will gain more southbound market share and possibly more northbound spot interest. By Meghan Yoyotte and Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Treasury updates SAF tax credit guidelines


30/04/24
30/04/24

US Treasury updates SAF tax credit guidelines

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New US rule may let some shippers swap railroads


30/04/24
30/04/24

New US rule may let some shippers swap railroads

Washington, 30 April (Argus) — US rail regulators today issued a final rule designed to help customers switch railroads in cases of poor rail service, but it is already drawing mixed reviews. Reciprocal switching, which allows freight shippers or receivers captive to a single railroad to access to an alternate carrier, has been allowed under US Surface Transportation Board (STB) rules. But shippers had not used existing STB rules to petition for reciprocal switching in 35 years, prompting regulators to revise rules to encourage shippers to pursue switching while helping resolve service problems. "The rule adopted today has broken new ground in the effort to provide competitive options in an extraordinarily consolidated rail industry," said outgoing STB chairman Martin Oberman. The five-person board unanimously approved a rule that would allow the board to order a reciprocal switching agreement if a facility's rail service falls below specified levels. Orders would be for 3-5 years. "Given the repeated episodes of severe service deterioration in recent years, and the continuing impediments to robust and consistent rail service despite the recent improvements accomplished by Class I carriers, the board has chosen to focus on making reciprocal switching available to shippers who have suffered service problems over an extended period of time," Oberman said today. STB commissioner Robert Primus voted to approve the rule, but also said it did not go far enough. The rule adopted today is "unlikely to accomplish what the board set out to do" since it does not cover freight moving under contract, he said. "I am voting for the final rule because something is better than nothing," Primus said. But he said the rule also does nothing to address competition in the rail industry. The Association of American Railroads (AAR) is reviewing the 154-page final rule, but carriers have been historically opposed to reciprocal switching proposals. "Railroads have been clear about the risks of expanded switching and the resulting slippery slope toward unjustified market intervention," AAR said. But the trade group was pleased that STB rejected "previous proposals that amounted to open access," which is a broad term for proposals that call for railroads to allow other carriers to operate over their tracks. The American Short Line and Regional Railroad Association declined to comment but has indicated it does not expect the rule to have an appreciable impact on shortline traffic, service or operations. Today's rule has drawn mixed reactions from some shipper groups. The National Industrial Transportation League (NITL), which filed its own reciprocal switching proposal in 2011, said it was encouraged by the collection of service metrics required under the rule. But "it is disheartened by its narrow scope as it does not appear to apply to the vast majority of freight rail traffic that moves under contracts or is subject to commodity exemptions," said NITL executive director Nancy O'Liddy, noting it was a departure from the group's original petition which sought switching as a way to facilitate railroad economic competitiveness. The Chlorine Institute said, in its initial analysis, that it does not "see significant benefit for our shipper members since it excludes contract traffic which covers the vast majority of chlorine and other relevant chemical shipments." By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia's 2024-25 wheat, barley exports to fall: USDA


30/04/24
30/04/24

Australia's 2024-25 wheat, barley exports to fall: USDA

Dalby, 30 April (Argus) — Australia's wheat and barley exports for the 2024-25 marketing year are projected by the US Department of Agriculture (USDA) to fall because of reduced domestic stocks with increased export demand. Australia's wheat production is forecast at 25.8mn t for March 2024 to February 2025, below the previous year's 26mn t, according to the USDA's Foreign Agricultural Service (FAS) report. Wheat yields are predicted at 2.15 t/hectrare (t/ha), 3pc below the previous 10-year average of 2.22 t/ha. This forecast is below recent past yield results, which peaked at 3.11 t/ha in 2022-23. Barley production is forecast at 10.9mn t, similar to the previous year's 10.8mn t but based on increased planted area and a lower average yield, the report said. Wheat exports are forecast at 17.5mn t, a 2.5mn t fall from the 2023-24 estimate of 20mn t. Australia's barley exports are projected at 5mn t, 2mn t below 7mn t in 2023-24. A previous three years of high barley production has resulted in a stockbuild, which the USD FAS expects to be drawn down in 2023-24 because of firm export demand. East Australia's New South Wales, Victoria and Queensland states have generally received average to above-average rainfall from the start of 2024, which has led to good soil moisture at the start of planting. But Western Australia and South Australia started the planting period with below-average soil moisture and have yet to receive enough rain to get the winter planting going in earnest, according to the report. The weather will influence decision-making regrading increased fallow area and changing the balance of the winter cropping programme. The extent of the change will depend on how much and when the rain falls. The Australian Bureau of Meteorology (BoM) on 16 April declared an end to El Nino weather trend with its dryer than usual conditions that it first announced in September 2023. Conditions have returned to neutral, with BoM reporting that some climate models indicate a chance of a shift to the wetter than usual conditions of La Nina by July this year. But the majority of Australia had average to above-average rainfall despite an El Nino being declared. By Jessica Clarke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Estoques de etanol no Centro-Sul recuam em abril


29/04/24
29/04/24

Estoques de etanol no Centro-Sul recuam em abril

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