Local grain prices soften for June, Rabobank finds

Rabobank’s June report has revealed how grain prices are tracking.

Softer prices: For June, malting prices were down about 14 per cent month on month and feed prices had fallen about 12 to 18 per cent according to Rabobank.

A COMBINATION of high wheat production expectations, China’s implementation of dumping and subsidy margins and a strong Australian dollar have softened local grain prices this month.

Rabobank’s June commodity report showed malting prices were down about 14 per cent month on month and feed prices had fallen about 12 to 18 per cent.

According to the bank, lower barley prices subsequently pushed down wheat prices, with APW1 rates down about 8 per cent month on month.

As of Monday Australian Premium White Wheat delivered to Melbourne was at $365 a tonne, compared with $395 this time last month.

The Australian dollar softening to about US60c during the year would also play a role in supporting local grain prices as local supply was renewed, the report said.

Globally, Europe and the Black Sea region reduced wheat price “downside”, the report said.

But improved year- on-year crop expectations in both Argentina and Australia have put pressure on “any further gains”.

Weather in the US will be watched closely, the report said, with plantings near completion in most areas.

“Volatility on the back of unseasonal dryness and heat or late and cold flurries can be expected,” the report said.

As of late last week global wheat futures lifted, a Commonwealth Bank market report found, with the Chicago Board of Trade July ’20 contract sitting at US524c a bushel.

The previous week it was at US515c.

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And Australian ASX East future January ’21 contracts were about $3 higher, sitting at $297.5 a tonne on Friday, according to Mr Gorey.

On Thursday the contracts were at $294 a tonne.