Prices soar as global production plummets | Queensland Country Life


Local grain prices ended the week sharply higher after the USDA lowered its forecast for global wheat production.

New crop East Coast ASX wheat futures jumped $ 17 to $ 345 per tonne as world markets surged higher following larger-than-expected cuts in global wheat production.

Respected grain analysts expected the USDA to cut estimates of world wheat production in its monthly estimates of global supply and demand, but the size of the cuts came as a surprise.

The largest reduction was recorded in Russia, where 2021-22 wheat production was reduced by 12.5 million tonnes, or 15%, to 72.5 million tonnes. Falling winter wheat yields and a series of thaw and refreeze events earlier in the year, called scabs, which reduced the harvested area, triggered a major revision of the wheat crop in Russia. , the USDA said.

Canada’s wheat production was reduced from 7.5 t to 24 t due to worsening drought conditions in the Prairie provinces in July.

This would be the smallest Canadian wheat crop in more than a decade.

Production increases in Ukraine and Australia partially offset steep reductions in Russia and Canada.

Australian wheat production increased from 1.5 to 30 million tonnes thanks to favorable weather conditions.

World prices for barley and canola are supported by the weaker Canadian crop.

This is shaping up to be a good season for Australian grain farmers as tight global supplies of grains and oilseeds push up prices, coinciding with an expected record harvest.

The bumper harvests have also benefited the storage and trading companies. GrainCorp raised its profit estimate to $ 125-140 million after a record grain catch of 16 million tonnes last year.

Domestic demand for cereals also remains robust.

Cattle fed for the quarter from April to June 2021 rose to 1,173,652 head, an increase of 168,617 head compared to March, according to the latest results of the ALFA and MLA survey.

Queensland accounted for much of the increase in the number of cattle fed, increasing by 166,381 head, or 30.7 pc, to 708,557 head.

New South Wales, Victoria and South Australia recorded modest increases in the number of cattle fed.

The strengthening of world markets has led to a sharp increase in the supply of cereals from South Queensland. New crop feed wheat stocks increased from $ 15 to $ 325 / t delivered to the Darling Downs. New season barley increased from $ 25 to $ 295 / t.

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