Market falls for wheat

Prices for wheat have fallen by $30 a tonne in just two months, with some farmers grateful to have sold last year before the slump. See how prices are tracking.

Wheat markets are spiralling downward, with prices falling $30 a tonne since November last year.

In comparison wheat was making $420 a tonne, delivered Melbourne, in January 2023.

This price is $60 a tonne higher than the current market return being paid to growers.

Wheat delivered to the port in Victoria was sitting at $360 a tonne. However, returns were closer to $390 a tonne in November.

Market Check chief executive Nick Crundall said the wheat market was weak, and the effects were felt in Victoria.

“Week on week, we are seeing prices drop by $10 a tonne depending on what quality, or grade, we are talking about,” he said.

The lower price trend has been occurring in tandem with what is happening offshore, too.

“There is not a lot of demand for wheat in our markets,” Mr Crundall said.

Rain across the East Coast, particularly in the past six weeks, had contributed to the decline in demand.

The wet weather and boosted soil moisture also meant a larger summer crop would likely come to fruition in northern markets.

On the export side of the market, China was not flexing its buying muscle.

“A lot of other export destinations like Southeast Asia have bought what they need and will look to buy again in March and April,” Mr Crundall said.

World conflicts, including the Red Sea crisis, were also having an impact on markets.

Ben Langtry, Marrarvale at Marrar in southern NSW. Picture: Yuri Kouzmin

Ben Langtry of Marrarvale at Marrar in southern NSW said he was grateful to have sold 95 per cent of wheat during harvest when prices were better.

“I feel like we did the right thing in selling it as soon as it hit the silos,” he said.

Farmer and Birchip Cropping Group chairman John Ferrier said wheat markets had gone quiet.

“Buyers have fulfilled their contracts,” he said.

Mr Ferrier said there were farmers who had spread risk by selling at harvest or locking into forward contracts, and then there were others with wheat stored.

David and John Ferrier with Lotty the Golden Retriever puppy. Picture: Zoe Phillips

“Post-harvest people will hold off with the current prices and see where the market does end up,” he said.

Mr Ferrier said harvest across Victoria was still going in some parts.

“A lot of people are finished, but there have been some challenges with the weather,” he said.