Local grain markets remain steady - Queensland Country Life

Local grain markets remain steady and stable with no sign this pattern is about to change.

Australian farmers have already sold most of the 2020 wheat crop and are in no hurry to market remaining volumes.

Exporters have already secured most of the wheat farmers delivered into the bulk handling storages, with the focus now on ensuring the large export program progresses smoothly.

Export sales have slowed as importers baulk at the high prices and cast their eyes to cheaper prices July onwards when the new crop northern hemisphere winter wheat harvest starts.

Domestic buyers are well covered for the next couple of months and are showing no urgency for additional supplies.

Good summer rains across much of southern Queensland and NSW have boosted the prospects for the upcoming 2021 winter crop planting.

Favourable price outlooks, beneficial summer rains in the northern cropping zones as well as extended forecasts for above average autumn rainfall across much of Australia are conducive to another large winter grain crop in 2021.

The Australian Bureau of Agricultural and Resource Economics is forecasting that Australian wheat production in 2021 will decline to 25 million tonnes, down from last year's record large 33.3mt crop. ABARES said yields were expected to return to average levels but continued large plantings would allow another large harvest.

Winter crop plantings are expected to start in the coming weeks.

It is a perfect start for WA farmers after last week's widespread, soaking rains that dumped 25 to 100 millimetres across large areas of the state's cropping regions.

Queensland and northern NSW had another band of rain and storms early this week which could trigger some early plantings of winter forage crops in some areas.

International grain futures continue to be well supported as dry weather in Argentina erodes corn and soybean crop expectations.

Global oilseed markets surged to decade highs last week as the dry weather further reduces already tight supplies.

United States wheat futures benefited from the strength in soybean and corn, but gains were modest. It is early days for the northern hemisphere winter wheat crops which are just exiting winter dormancy, but conditions are looking considerably more favourable than they were at the start of winter.

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Local grain markets remain steady - Queensland Country Life
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