HIGH YIELDS BUOY CENTRAL GRAINBELT
Despite a slight glitch in feed barley values last week, overall grain prices remain buoyant and above five-year average levels, according to industry experts.
This is in part due to WA’s delayed harvest start and drought conditions in the Eastern States.
But the outlook going into the new year is variable, with some analysts suggesting increased wheat price pressure depending on the extent of supply coming out of the Black Sea region.
Plumgrove trader Tony Smith said global grain stocks were high and Black Sea-origin wheat was trading about $30-40 per tonne lower than Australian wheat in world markets.
“There is not a lot of WA selling activity going on right now, with most growers assessing their yields and options as they start harvest programs,” he said.
“This is helping to hold prices, but this might change as Australian deliveries pick up from January.
“We will need to see the levels of Russian wheat stocks and prices — and those from other Black Sea areas — at that time.”