Grain price high
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.