Australian wheat prices have risen to a three-year high

Australian wheat export prices have risen sharply amid disruptions to Black Sea grain supplies and a shift in some Asian demand toward Australia. According to Platts, ASW1 wheat reached $291/t FOB Kwinana on August 24, its highest level since July 2023.

Since attacks on Black Sea ports and shipping intensified on July 6, ASW1 prices have increased by $25/t. Australian Premium White (APW) wheat gained $26/t over the same period to $298/t FOB Kwinana, its highest level since June 2024.

The Australian market is being supported by reduced availability of Ukrainian and Russian wheat during a key shipping period to Asia. Southeast Asian buyers are increasingly turning to Australian wheat for September-October shipment, while freight costs from the Black Sea to Southeast Asia have risen above $80/t.

Alternative shipments of Russian wheat to Asia through Baltic ports also remain economically unattractive due to high logistics costs. As a result, reduced Black Sea availability is strengthening Australia’s competitive position in key Asian markets.

Prices are also supported by limited farmer selling in Australia ahead of the new harvest. According to traders, September-October export capacity is already largely committed, while new-crop supplies are not expected to significantly increase availability until later in the fourth quarter.

Tags: prices, wheat, logistics, Australia, export