7 Nov 2014

Lower level of unsold grain stocks

4:34 pm on 7 November 2014

Stocks of unsold and stored grain are sitting at much lower levels than the previous two years, putting growers in a good position as they look to next year's harvests.

The latest Arable Industry Marketing Initiative survey shows only 25,000 tonnes of feed wheat left unsold on farms - about half the level of last year and a third of 2012.

Feed barley stocks at 22,000 tonnes are down to 60 percent of last year, and the 9000 tonnes of unsold tonnes of milling wheat is less than a third of what was unsold and still on farm in October 2013.

David Clark, a representative for grain growers in the South Island, said an average harvest last season, combined with strong demand, would leave farmers will empty silos going into the next harvest.

"That's encouraging for next season - that we're not going to be putting grain on top of a carry-over from the season previously.

"But there's also another story in these figures. The sold and delivered to the end user tonnages across all the major categories have seen that New Zealand grain has sold at much higher tonnages and been delivered earlier than has been seen over the last four seasons.

"So that's really encouraging that buyers are recognising that New Zealand growers grow a high quality product, it's available here and it's meeting with a good market. I guess that's on the back of what's been also good dairy year and the year prior."

Mr Clark said grain prices prices through the past winter have also been strong and that had resulted in a good sellout of the grain - although world prices have eased a little since.

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