Milder weather conditions meant predicted significant disruptions to rail transport of grain failed to materialise, according to industry leaders.
Grower groups expressed fears hot weather would significantly disrupt the transport of the record 10.2 million tonne harvest to Victoria’s ports.
But Grain Industry Association of Victoria president, Andrew Kelso said it appeared the biggest problem were delays caused by ships being held up, due to failing marine surveys.
“I don’t think it has been the issue it could have been, if we had had a really hot summer,” Mr Kelso said.
“I guess we haven’t had anywhere near the heat we have had in previous years.
“I think it’s had an impact, in a small way; there had been a couple of occasions where trains haven’t moved, because of the hot weather.
“But one of the bulk handlers said sometimes it wasn’t helped by the number of vessels failing surveys, which pushed everything back up the supply line.”
Mr Kelso said bulk handlers had observed the tight margins in shipping costs meant some operators “may not have been as focussed on being diligent and ready for inspection.”
Failed surveys meant delays of up to two or three days, in getting grain on board and ships out of port.
Mr Kelso said the association held its annual season review, late last week.
“Pretty much all of Victoria had well above average yields, with the exception of the southern Riverina, where there were average yields, at best,” Mr Kelso said.
“They probably had too much rain in September, and lost some area through flooding.
“In Victoria, everything seemed to fall into place at the right time, we have ended up with a record production outcome,” he said.
All the bulk handlers reported “exceptionally strong” use, although a significant amount of grain was still being held on farm.
“There are still quite large volumes held on farm, as there wasn’t sufficient storage available, in some of the bulk handlers.”
Most of the canola had been priced, as it was attracting good returns.
Riordan Grains managing director Jim Riordan agreed the heat restrictions did not have a major impact.
“I don’t think it changed anyone’s schedules, as far as deliveries go,” he said.
“I wouldn’t say, in Victoria, (grain transport) has been massively impacted.”
He said the rejection of vessels, at Geelong, had forced some grain back onto farms.
“From our point of view, it’s been probably one of Victoria’s biggest crops ever and logistically it’s a big challenge for everyone to get the crop moved,” he said.
Riordan Grains successfully loaded two bulk grain shipments, from Lascelles Wharf.
The first, a 23,000 tonne consignment of barley destined for China, marked the first time the port had executed a bulk shipment from facilities, other than the GrainCorp bulk grain pier.
The company leased a mobile ship loader from Queensland and used road transport to bring the grain to port.
Mr Riordan said a second vessel was filled with feed wheat, earlier this week.
A V/Line spokesman, Rob Curtain, said no freight services had been cancelled, because of high temperatures.
Heat restrictions had been imposed, meaning freight operators had to run trains at slower speeds, but delays were compensated for, by running trains at full operational speed at night.
He said the record grain harvest meant freight operators were using both rail and road to move the crop.
"Temporary speed restrictions (TSR’s) are in place to keep people safe and avoid costly and disruptive derailments."
Temporary restrictions, during the grain season, had been imposed on the track for trains travelling between Korong Vale and Manangatang.
Mr Curtain said the TSR had been in place since late last year, following a track assessment, and it was not related to temperature issues.
TSR’s applied to 18 kilometres of the 1000kms of the Murray Basin freight network, due to the sighting distance at level crossings.
“TSR’s were put in place for no other reason than to keep people safe,” Mr Curtain said.
“They reduce the risk of horrific accidents and derailments -- which, on top of the human cost, cause far more disruption that slowing a train for a few kilometres.”
He said 2016 was the first calendar year, since at least 2009 without a heat-related derailment on the Victorian freight network.
The Murray Basin lines account for around seventy per cent of the freight network operated by V/Line.
CBA Economics released its third AgQ Report, providing a quarterly update on the agri-commodities sector.
CBA Agri-Strategist Tobin Gorey said the agriculture’s components were converging on neutral supply conditions.
“This means that commodity prices that spiked higher in 2016 will ease through this year, while those prices that lagged (such as dairy and wheat) will improve.”
He said the weight of wheat supply should ease in 2017, allowing prices to rise modestly
Australia produced a record wheat crop of 35.1mmt in season 2016.
“Australian wheat is competitive globally so we will be a big exporter. The grain pipeline though has, understandably, struggled to handle the huge winter grain crop in eastern Australia,” Mr Gorey said.
Mr Gorey said a clogged pipeline meant further price falls for Australian farmers, but those issues should resolved themselves sooner rather than later, adding around $10-30 a tonne, to prices.
“Global wheat supply will tighten in season 2017 for a number of reasons,” he said.
“One key factor is that US farmers have cut winter wheat planting to century-plus lows.
“US farmers are down-sizing their wheat crop to reflect market share lost to the Black Sea exporters.”