Unseasonal rains in southern Australia have caused significant challenges for crop production, particularly in the barley and wheat sectors. These rains have led to a deterioration in the quality of the crops, with some areas experiencing delays in harvesting.

The rains have also disrupted transport, hindering the timely delivery of grains to markets. As a result, the supply of high-quality crops has decreased, leading to higher prices and a strengthening market.

In the northern regions, including Queensland and northern New South Wales, harvesting is either complete or nearing completion. However, crops that could not be stored safely on time have been damaged by the rains.

In some cases, the quality of these crops has degraded to the point where they are unsuitable for human consumption and are now only suitable for animal feed.

As a result, many producers are selling barley and wheat with low protein content as feed, especially as the harvest for sorghum approaches.

Barley prices have softened in the northern regions due to an increase in selling activity. Meanwhile, the market for soft wheat remains robust because of uncertainty surrounding the remaining wheat crop in Victoria.

The wheat coming from southern and central New South Wales is also of lower quality, with reduced weight and strength.

As of November 28, prices were recorded as follows: $323 per ton for barley in the Downs region and $325 per ton in Melbourne, $340 per ton for soft wheat in the Downs region, and $355 per ton for wheat in Melbourne. Sorghum was priced at $323 per ton in the Downs region.

Producers in the northern states are eager to sell their wheat and barley due to the attractive prices, as most of the crops there have been harvested and much of the gram stock has already been sold.