El Niño Fears Fuel Grain Price Rise

Grain prices in Australia continue to rise, driven by global wheat market trends and concerns about new-crop production due to the impending El Niño event.

A strong to very strong El Niño is forecasted, with most models indicating it could peak at levels among the highest observed since 1950. Growers are worried that hot and dry conditions could severely impact yield prospects, leading them to be cautious about selling forward.

Across southern Australia, wheat and barley crops have stellar yield prospects but are at risk of incurring damage from frost or a hard start to spring. In Queensland, cropping regions recorded little to no rain in the past week, with Qld crops needing a drink to preserve yield prospects.