Wheat prices on rebound from drop in March

Australian wheat prices have recovered from some of there falls in mid‑March, according to an industry expert.

Going up: New-crop January ’22 prices returned to the $300 level late last week.

AUSTRALIAN wheat prices are edging higher after falls last month, a new commodity report has shown.

Commonwealth Bank’s global markets research report, released late last week, says prices have recovered “about half of the fall in mid‑March”.

“ASX East prices continued to rally Friday, somewhat more so in the new-crop contracts,” report author Tobin Gorey said.

“New-crop January ’22 prices returned to the $300 level.”

At about the same time last month, prices were at $294 a tonne.

Mr Gorey said spot prices were also creeping higher.

“Spot prices in the south‑east were marked another $2 higher, Adelaide aside,” he said.

Late last week, wheat out of Geelong was at $286 a tonne.

“Prices look a little on the low side still at those ports, and in Adelaide in particular,” Mr Gorey said.

And cold weather in the US could result in some local price reaction, according to Mr Gorey.

“Cold weather in the US over the weekend might mean a stronger start for US futures,” Mr Gorey said.

“And that would be a bigger influence on early local price action.”

He said there was a possibility that crops is the US Hard Red Winter wheat regions could have been damaged by the cold.

For global prices, wheat futures did not change much late last week.

As of Friday, Chicago Board of Trade July ’21 prices were at $309 a tonne, which was the same price as the previous trading day.

“Perhaps notable is the $US2-$4 gains in Black Sea Russia prices over the past couple of days,” Mr Gorey said.

“The price gains in Russia are an important validation of the moves to higher prices elsewhere.”

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