Northern Grain Prices Plummet Amid Southern Crop Confidence
Australia's north and south grain markets are showing mixed trends as production prospects vary across regions. In the northern region, bids for wheat and barley have dropped by up to $15 per tonne this week due to consumer confidence in a bumper southern crop.
Trade sources attribute the drop to adequate coverage into next quarter, despite production prospects sliding for most crops near maturity. In contrast, new-crop values in the south have firmed due to reduced availability out of drought-affected Europe and the impact of war on Black Sea grain shipments.
El Niño remains a concern in both markets. Knight Commodities' Gerard Doherty said that indications point to production down by more than half in the north, while seasonal conditions improve markedly from around Dubbo south.