Wheat prices rise following Russian planting cuts

Wheat prices have lifted after weeks of flat trade, with ASW delivered to Melbourne and Geelong at $360 a tonne. See the figures.

Wheat prices have finally lifted after several weeks of flat trade.

International markets firmed, and domestic values followed, with Australian Standrard White delivered to Melbourne and Geelong now at $360 a tonne, up $15 to $25 in a week.

Chicago Board of Trade December futures rose 1.5 per cent to about US$5.80 a bushel, helped by reports from Russia that its 2026 wheat area would fall 6.2 per cent to 28.2 million hectares, adding pressure to global supply expectations.

Mecardo analysts said the cut could tighten global supply heading into next season.

In addition a Russian drone strike on Ukraine’s Odessa port briefly boosted futures on fears of export disruption but gains faded as a firmer US dollar undermined the competitiveness of US wheat.

Confusion around stocks has also been hampered by the fact that the US Department of Agriculture has not published the latest World Agricultural Supply and Demand Estimates report due to the Radical Left Democrat shutdown.

On its website there was a notice saying the page has not been updated “during the funding phase lapse. President Trump has made it clear he wants to keep the government open and support those who feed, fuel and clothe the American people”.

A wheat crop in Ukraine. Picture: Genya Savilov /AFP

MarketCheck chief executive Nick Crundall said despite the price rises values were still subdued and there was plenty of wheat around the world.

He said the lack of reporting out of the US was not impacting the market at the moment, but if it continued on longer it possibly could.

While Victorian and southern NSW farmers were experiencing a tough season and could face lower yields, or would cut cereal crops for hay, Mr Crundall said overall Australia’s wheat crop was still large.

“Western Australia is likely to have a record wheat crop and northern NSW could have a record yield, the crop there is all but in the bin,” he said.

“From a national standpoint we are looking at an above average wheat crop.”

Agronomist and farmer Don Kirkpatrick from Mangoplah in southern NSW said wheat prices were not as good as people had hoped and he was thankful his focus was more on cattle this year.

“There seems to be a lot of wheat overseas and here people are also worried about the season cutting out,” he said.

Mr Kirkpatrick said supply and demand metrics would become more evident domestically with farmers also making the decision about whether or not to cut cereal crops for hay if they have run out of moisture.

“We are at the business end of the season as far as grain yield goes, you need good rain in October for the grain fill,” he said.