Northern feed grain prices climb as dry weather and fuel costs bite
Northern feedgrain values rose this week due to a reduced production outlook and high fuel costs, while southern prices fell as crop prospects improved and global wheat values softened. In Queensland, demand increased as farmers stopped selling from the farm and expensive diesel discouraged buying from the south. Central Queensland harvest is advanced, and border-region barley and wheat harvests are expected in the coming weeks, with dry conditions raising concerns about yields and test weights.
Northern feed grain markets tightened this week. Reduced production expectations and costly fuel pushed values higher, while southern prices eased as crop conditions consolidated and global wheat values weakened. Queensland demand rose as growers withheld farm sales and high diesel costs made southern purchases less attractive.
Central Queensland's harvest is well along, with border-region barley and wheat due in coming weeks. Dry weather has raised worries about lower yields and test weights. Indicative quotes showed Downs barley prompt at $420/t, up from $410, while Melbourne barley slipped to $310/t from $320 and Melbourne ASW fell to $375/t from $380.
Higher northern feed grain costs could squeeze feedlot and livestock margins, and some of that pressure may eventually reach meat, poultry or dairy prices. Queensland growers with surviving crops may gain from stronger bids, while those facing poor yields or hay cuts could still struggle. Southern sellers might find opportunities, but costly freight may limit northbound trade. Consumers may see modest food-price effects if elevated feed costs persist.