Crops in Western Australia were punished with yet another severe frost overnight Wednesday, following a devastating hit on the weekend at a critical time in development.
Prices for this coming January’s ASX East wheat contract reached new season highs of $442 a tonne after devastating frosts in Western Australia over the weekend.
The previous high for a January wheat contract was in 2011 when the January ’12 ASX East contract was $364.50 a tonne.
“Australian spot wheat prices ended high on the east coast on Tuesday, with reports of weekend frost in Western Australia impacting pricing,” Mr Gorey wrote in a Commonwealth Bank market report.
John Chapman, a farmer in Bruce Rock, tweeted that 50% of his wheat crop is “stuffed,” adding that this was the, “biggest frost I have seen in my short 15 year history.”
Barley in Bruce Rock WA. Not great, wheat is mostly gone. At least 50% is 100% stuffed for me. Canola maybe ok if it’s in a hill. Biggest frost I have seen in my short 15 year history. pic.twitter.com/YAPZ1mO5Dm
— John Chapman (@_johnchappy_) September 19, 2018
Extreme weather conditions are tightening the Australian grains market as we descend into the next Grand Solar Minimum.
This additional midweek frost will likely heap even more pressure on the markets, with reports coming in of canola and potatoes suffering too.
Stay tuned for updates.
Potato growers in WA’s south west have also been hit hard by the same weekend frost that caused widespread damage to grain crops in the region. Up to 90% of current potato crops are impacted. pic.twitter.com/HCUOsMze1F
— Anthony Pancia (@byanthonypancia) September 18, 2018