Grain Prices Rise Amid El Niño Uncertainty

Grain prices in Australia are continuing their upward trend due to strong global demand and uncertainty over new-crop production. According to the Bureau of Meteorology, a strong to very strong El Niño event is predicted for this year, which could lead to hot and dry conditions that severely impact yield prospects.

Growers across southern Australia are being cautious about selling forward due to concerns about frost damage and the potential for a hard start to spring. In fact, some regions have already experienced light frosts in the past week, although daytime temperatures remain relatively mild.

In Queensland, crops are in need of rain to preserve yield prospects, with early central Qld crops as few as four weeks away from harvest. The trade is mostly covered into new crop, and consumers including feedlots have left 2027 business to the trade thus far.