Rain in parts of NSW is easing some of the drought premiums but global fuel supplies still influence commodity prices.

Forbes in Central West NSW received 10mm last week and 63mm this month to date.

While Inverell in the New England has received only 5mm this month the rainfall has been enough to pull down northern prices for the most expensive feed grain, barley.

Protein prices are increasing with lupins in the Riverina quoted at $660 a tonne ex farm, up $25 a tonne and canola meal is quoted at $495 a tonne ex Riverina plant, up $15 a tonne.

Last week’s northern Mallee falls of 37mm at Ultima and 40mm at Walpeup are also welcomed.

Weather and soil moisture have been top of mind for growers as they are critical for production and revenue.

Still present is the lingering issue of long term fuel supplies for farming operations.

Since the US and Israel launched the first missiles against Iran on February 28, there has been an increasing recognition of the plight of farmers and rural Australia. Diesel supply mandates and targeted stock releases during crises are valuable.

Australia’s fuel reserves are higher now than before the hostilities began and diesel prices have retreated, yet the Strait of Hormuz is virtually closed and harvest fuels supplies remain uncertain for most grain growers.

The National Fuel Security Plan was released by the Australian Government on March 30.

While this plan remains under consideration, it does not explicitly define farmers and food production as a critical service for fuel prioritisation during the worst case level 4 of the plan.

Crude oil futures are considered the ultimate barometer of confidence in oil supplies.

The West Texas Intermediate futures prices traded on New York exchange have increased 57 per cent since the war began and are still trading within 7.2 per cent of the peak achieved a week after the strikes began.

Vegetable oils are increasingly being used for biofuel.

Next month, Malaysia will increase its minimum palm oil content in diesel from 10 per cent to 15. Similarly on July 1 Indonesia will start a 50 per cent palm oil blend for the country’s diesel with the higher blend to be mandatory by 2028.

These changes of policy and the strong crude oil prices have supported canola prices.

Local canola prices have mirrored the $15 a tonne price increase on the French rapeseed futures. New-crop canola prices are bid by exporters at $823 a tonne on a Victorian port basis, up 1.8 per cent for the week and 12 per cent higher since the Iran war began.

There are concerns over the future of Australia’s canola exports to China.

While trial shipments began last November after a five-year break in the imports of Australian canola to China, grain analysts question the renewed trade considering the Australian government’s review of the Chinese ownership of the Port of Darwin.