Grain price high

Countryman - - HARVEST - Melissa Wil­liams

The State’s grow­ers stand to ben­e­fit from con­tin­ued higher grain prices into 2019, driven par­tially by lower na­tional pro­duc­tion and con­tin­u­ing strong de­mand for feed grain in the drought-af­flicted East­ern States, ac­cord­ing to Rabobank.

Com­pany agri­cul­tural an­a­lyst Wes Le­froy said wheat ba­sis was at decade highs across the east coast and SA, while do­mes­tic grain ex­ports to the east had taken the WA ba­sis to seven-year highs.

“Ex­pec­ta­tions of the first de­cline in global wheat end­ing stocks in six years in 2018-19 have moved global pric­ing up 15 per cent in 2018 and above US500¢ a bushel for the first time in 2.5 years,” he said. “We fore­cast prices to re­main in the higher range of US550¢-US550¢ a bushel in the next 12 months, but with some soft­en­ing in Q2 2019, as an ex­panded north­ern hemi­sphere wheat har­vest be­comes ap­par­ent.”

Mr Le­froy said Rabobank ex­pected grain ex­ports from Aus­tralia would halve from last year, at 13.9Mt.

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