Grain is grain and values continue to lift
Prices across all grades/commodities/locations continue to be well supported as Buyers cast their net wide to secure grain. Whilst trade volumes on Clear Grain Exchange reflect the quality profile of last years crop, buyers are clearly interested in all grades.
ASW1, APW1, H2 wheat and Feed barley made up 35%, 14%, 13% and 9% of all trades on Clear Grain Exchange last week respectively. However 20 grades of 5 commodities traded across 11 port zones in total which reflects the extensiveness of demand.
The dryer than normal conditions in many parts of Australia and North American spring wheat areas is seeing buyers pushing values higher despite harvest of the US winter wheat crop now well under way.
Many growers have also been holding onto grain waiting for the new financial year. It will be interesting to see whether the volume offered increases in the coming month or whether the dry conditions locally see growers remain patient and continue to hold grain as a drought hedge.
The lift in prices will hopefully help offset some of the poorer seasonal conditions thus far...... but we all pray for rain.