Australia: Domestic grain prices climb as US futures soar

Published 2021년 5월 10일

Tridge summary

Last week, domestic grain markets in the United States and Australia strengthened due to concerns over global supply tightness, with futures hitting record highs. This has led to an increase in the price of wheat, barley, and sorghum, despite last year's record harvest. The surge in the US grain markets is largely due to a 30% rise in corn prices over the past five weeks, driven by severe drought in Brazil and high demand from China. In Australia, grain sales have been delayed as farmers prioritize planting, and grain truck shortages have further complicated matters. Despite these challenges, Australia's grain exports remained strong in March, with significant shipments of wheat and barley to Vietnam and Saudi Arabia, respectively.

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

Original content

Domestic grain markets continued to strengthen last week as United States futures soared to new rally highs amid concerns of tightening global supplies. Grain buyers are being forced to pay up for local grain supplies, despite last year's record harvest, to secure wheat, barley, and sorghum. Grain prices crept higher through the week as buyers followed overseas markets up. The rally in US grain markets is being driven by corn where prices have rocketed 30 per cent higher in the past five weeks. Severe drought in Brazil is raising concerns of looming feed grain shortages, which is being accentuated by China's unrelenting demand for feed grain imports. United States Department of Agriculture is expected to slash its forecast for Brazil's corn crop when the latest world supply and demand estimates report is issued this week. Nearby prices for wheat and barley across eastern Australia rallied by $5 to $20 a tonne with even stronger gains in WA. Active buying from the northern feedlots ...

Source: Queenslandcountrylife