HIGH YIELDS BUOY CEN­TRAL GRAINBELT

Countryman - - FRONT PAGE - Melissa Wil­liams

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.”

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