Global grain glut puts pressure on Australian prices

Excess global wheat stocks and expectations of a record US corn crop continue to weigh on prices in global grain markets, including Australia. The absence of major weather problems around the world has helped keep grain stocks stable over the past year, and this trend is continuing. Australia is also forecast to have a large winter crop in 2025, which, together with favorable rains in Australia and Argentina, raises the chances of average or above-average wheat yields in the southern hemisphere. However, a surplus of global corn, about a fifth of which is used as feed grain, is putting additional pressure on wheat prices.

The USDA’s World Supply and Demand Estimates report, due out this week, is expected to show a rise in global grain stocks. Australian Standard White wheat futures remained at $330 a tonne, reflecting prices for the new crop at the port of Newcastle. Wheat exports from Australia in June totaled 2.54 million tonnes, of which 650,000 tonnes were shipped to Indonesia, while barley exports to China reached 78% of the total of 800,000 tonnes. A record US corn crop (415 million tonnes according to private analysts) is forecast to continue to put pressure on world prices.

Tags: Australia, grain, prices, wheat