GROWERS in the Geraldton port zone are set to make record profits this year according to Planfarm farm management consultant Cameron Weeks.
But despite the heightened morale of growers in the northern reaches of the Wheatbelt, Mr Weeks emphasised the need to have a marketing plan and seriously consider forward selling grain within the next few weeks.
At last week's Mingenew Irwin Group Spring Field Day Mr Weeks told growers to capitalise on demand within the bullish global wheat market.
Traditionally there were three times of the year when grain prices rallied and WA growers made the most of their opportunities spring, autumn and during harvest in the summer.
But according to Mr Weeks spring had historically been the best time to sell.
"I'm not saying it always attracts the highest price every year because harvest and post-harvest options throughout autumn are also historically attractive," he said.
"But of the three times of the year growers ought to try to sell grain, spring time has provided a brilliant window of opportunity."
There was also a rise in the number of growers who sold their grain at harvest, particularly since the deregulation of the wheat market in the 2008 season and for that reason the price basis at the beginning of harvest remained relatively strong.
"Growers need to capitalise on the demand good competition brings, particularly early in harvest," Mr Weeks said.
"But good plans also take into consideration the fact that we will never be able to predict what might happen between now and then, as last harvest showed."
But Mr Weeks also said autumn proved to be a time when farmers started to think more about their tax status which encouraged a minor proportion of them to hold some tonnes over until the next year.
"We're coming into the spring window right now," he said.
"There is undoubtedly some bullish sentiment in the market because there's currently a fair bit of wheat in the world but total grain stocks are tight.
"Australia is trading wheat at fairly high levels historically, up to 800 cents a bushel."
But despite that nobody could ever predict where prices might end up in 2010/11, especially in the Geraldton zone where the crop was tipped to reach three million tonnes for the season.
So what is set to happen to basis prices this harvest when the Geraldton port zone is overstocked with grain?
"That's one thought that worries me," Mr Weeks said.
"If we look at the historical price of wheat, growers are receiving just under $300 a tonne so the Mingenew region is looking at very good prices for very good yields this year."
Mr Weeks had been revising client budgets during the last three months and said there were some enormous profits to made from current wheat prices.
"In regards to wheat I'm telling clients to look to sell a huge chunk of their grain throughout this next month," he said.
"There is certainly a fair bit on our side."
Historical figures showed it was quite common for world wheat prices to dip during the WA harvest but price drops weren't necessarily guaranteed either.
So Mr Weeks advised farmers take a serious look at the risks associated with formulating a marketing plan.
"We'll still see buyers come into the market and buy downgraded grain at lower prices like we have in the last two years but what if we don't?" he said.
"I'm not trying to tell growers where the price is going but just asking them to have a plan in place.
"If growers don't have a plan I suggest they get one because if prices start to slide at harvest and farmers have already forward sold 50 per cent of their crop they will be in a pretty good position to consider their options."
