GRAIN prices have continued to drop over the past week as a combination of local harvest pressure and international data supportive of a fall in values take the edge of the market.
All up ASX APW wheat futures have now fallen a substantial $57 a tonne from their end of November highs to sit at around $377/t for the January 2022 contract.
Cash prices have moved in a similar direction, with APW cash prices delivered port this week sitting at around $380/t east coast and SA and $370/t WA.
Canola has well and truly come back from its time above $1000/t to be around $850/t port in most regions.
After spending some time looking relatively globally expensive, Australian wheat in most port zones is once again strong competitive against rival origins.
However, while the prices have come back in most parts of the country they remain a record offer for harvest delivery.
While the short-term fundamentals remain strong for grain prices, Grain Brokers Australia's Peter McMeekin said the most recent US Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates (WASDE) was slightly bearish for wheat, with raised supplies and ending stocks both weighing on the market's mind.
However, he said while there were hefty falls on American futures exchanges immediately after the report dropped some of the losses were recovered with the market continuing to be concerned with dryness on America's southern plains.
Locally, harvest pressure continues with strong results in Western Australia, tipped to break records, and Victoria, in particular.
Harvest is also resuming in parts of flood-ravaged NSW.
In the Victorian Mallee Pullut, near Rainbow farmer Xavier Breen was harvesting wheat this week.
Mr Breen said the early sown variety he was harvesting had been mature enough not to be impacted severely by late season frost like some Wimmera-Mallee crops.
"There was a nasty frost right at the end of October which has knocked things around through the district a little, but we are still generally getting pretty good yields and the prices are good, so it's been a good year," Mr Breen said.
"You only have to look over at what happened in NSW and you feel pretty lucky, it's been great to see these good prices and to have the harvest to take advantage of them a little," he said.
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