Global: Australian buyers active in securing grain

Published 2023년 5월 28일

Tridge summary

The article discusses the global wheat market outlook, highlighting factors that contribute to its dynamics despite low global wheat stocks-to-use, which should typically support prices. These factors include the extension of the Ukrainian grain corridor by Russia, favorable crop conditions in Canada and the European Union, the US's optimistic spring crop planting expectations, and the potential for corn as a substitute for wheat. Despite potential production issues, global wheat futures have seen a decrease due to the market's comfort with the possibility of increased grain growth. In Australia, despite off-course futures, there is active grain purchasing due to local market conditions and diversified commodity trading.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Last week this column included a brief summary of the United States Department of Agriculture's recent World Agricultural Supply and Demand Estimates on wheat. The summation was global wheat stocks-to-use are projected to be tight and as such should be supportive to wheat prices. During last week the annual crop tour through Kansas, the US's largest producer of winter wheat, put yield estimates at the lowest levels since the year 2000. Despite this, global wheat futures ended last week lower. So, what are the major drivers of global wheat markets currently if not global stocks and US winter wheat conditions? There are a number. Russia extended the Ukrainian grain corridor last week giving the market some renewed confidence grain will continue to flow from the region, and they won't let the world starve despite the war. Analysts indicate crop conditions through Canada and the European Union are generally favourable at this stage. In the US, while the winter crop conditions are not ...

Source: Farmweekly