Australian wheat prices continue their lift

Australian wheat future prices have now exceeded their previous peak back in January, according to an industry analyst.

Commonwealth Bank market Agri Commodities Strategist Tobin Gorey said international weather concerns were playing into the wheat price boost.

AUSTRALIAN wheat future prices are surging to highs not seen since late January.

As of late last week, ASX wheat May 2021 prices were at $307 a tonne, after sitting at about $286 a tonne the previous week.

Commonwealth Bank market Agri Commodities Strategist Tobin Gorey said international weather concerns were playing into the boost.

“Up until early March we were pretty worried about US crops and crops in Russia,” Mr Gorey said.

“Those worries faded but then they have been rekindled in the last week or so.”

He said high temperatures (in the US) were experienced over the weekend, with more likely to come this week.

“This is exactly not what poorly‑developed crops in the southwest of the US Hard Red Winter region need,” he said.

“The other, still nascent, issue is the continued cool temperatures in Russia’s southern region and surrounds. “

As of Monday July 2021 Chicago Board of Trade prices jumped to new season highs, reaching $348 a tonne.

The previous trading day it was $338 a tonne.

Wheat prices were also lifting following “developing tightness” in feed grain markets, Mr Gorey said.

“Some of this is a wheat story, but some of this is a larger feed story,” he said.

“There were big gains in corn last week, so there is some cross-crop gain here as well.”

Mr Gorey said spot prices were mostly higher on Monday but still seemed to be “lagging behind”.

As of Monday, Geelong spot prices were at $308 a tonne, compared with $286 a the previous week.

Meanwhile, a Thomas Elder Markets report indicated canola prices were also on the up.

Canadian canola July 2021 prices were $722 a tonne on Monday, compared with $661 a tonne the previous week.

But Thomas Elder Market’s Andrew Whitelaw said while the rise in prices was “exciting” it was important to make a strategy.

“At the moment, though, we are only just into the silly season, and to start like this is welcoming,” Mr Whitelaw said