Smaller UK crop helps lift export faba beans to $320

24.01.2018

BUYERS of cereal grains and pulses are more active, as sellers have been tough to find.

Prices are yet to change substantially from their recent rates, but this is an encouraging trend for grain growers who are holding grain in warehouse or on farm stocks.

After the poor prices of $240 to $250 a tonne delivered to grain packers in Melbourne this time last year, the export faba bean price has improved to $320 a tonne.

A key market for faba bean is the human consumption market of Egypt.

UK grain growers have become a strong competitor for this market, as they are able to grow high-yielding crops with good quality and achieve competitive freight to the market.

During October there were reports the volume of export quality faba beans from the UK would halve to below 100,000 tonnes. Since this time Victorian faba bean prices have increased $50 a tonne to $320 a tonne delivered to grain packers in Melbourne.

Bean crops in southern England suffered insect damage and crops in northern England experienced fungal staining from rainfall late in the season.

Nugget lentil prices have settled after falling for three weeks following India’s 30 per cent import tariff imposed on December 21. Lentil prices fell $55 a tonne to the equivalent of $465 a tonne delivered to grain packers in Melbourne, but this week the price is $470 a tonne delivered Melbourne and more buyers are in the market.

Chick peas prices, for both the desi and kabuli, are higher this week. Kabuli chick peas are up $100 a tonne and quoted at $1,020 delivered to Melbourne, while buyers of desi chick peas are bidding $570 a tonne delivered to Melbourne or $550 a tonne delivered to Wimmera grain packers.

Canola prices are unchanged at $488 a tonne delivered directly to Geelong. A vessel is expected to soon begin loading 60,000 tonnes of canola at Geelong and at least two buyers are buying canola for direct delivery to the port.

Grain traders are watching the rainfall forecasts for the sorghum production zones of Queensland and northern NSW. To attract grain from the Riverina over the next six months, Victorian consumers would like to see a big sorghum crop to satisfy the northern markets.

Since the rains which initiated plantings in southern Queensland and NSW in October, falls have been patchy and the forecast remains dry.


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