Australian Grain Markets Widen Amid Contrasting Seasons

The spread between northern and southern grain markets in Australia has widened due to contrasting seasonal conditions. In the south, Victorian and South Australian wheat and barley crops are on track for bumper yields, thanks to expected rainfall.

New-crop wheat is being forward sold by some growers, and there's a possibility of an early start to the haymaking season in the south. The Dec-Jan ASW market is trying to crystallize at around $435/t, while new-crop barley is bid at $425/t.

In contrast, the north faces average or below-average yields for most cereal crops. Growers are holding out for higher prices, with some considering cutting their crops for silage due to lack of rain. Asian demand for Australian wheat has picked up, but northern growers are still waiting for bids to lift before selling.

Fuel prices have increased since the Federal Government ended excise relief, encouraging northern consumers to source locally. The trade is also looking at options to get grain from southern regions to meet new-crop slots.