AUSTRALIAN grain prices continue to be supported by ongoing feed demand in the United States and a colder-than-usual northern hemisphere winter, according to Emerald Grain.
Emerald general manager risk and pricing David Johnson said the short-term price outlook for wheat, corn and soybeans remained bullish.
“Wheat is becoming competitive in the US feed ration again as corn stocks decline," Mr Johnson said.
“On the weather front, the US plains remain dry and very cold.
"The Russian wheat area is also very cold with limited snow cover in the south, increasing winter kill risk.”
Mr Johnson said last week was a big week for US soybean exports.
“The US is far in advance of its soybean sales, ensuring carry-out of beans is small," he said.
“There are only so many beans left to ‘theoretically’ price.
“Brazil’s bean crop is in very good condition, while a drier outlook for Argentina is giving the market something to look at for both beans and corn. Argentina’s corn crop is coming into pollination and needs moisture.”
Mr Johnson said the Canadian canola crush was setting a record pace and canola values would need to rally to slow it.
“Combined with ongoing speculation of potential import of Australian canola to China, there is a positive outlook for Canola prices.”
Mr Johnson said the next month or so would offer good opportunities for Australian growers to sell old and new crop.
“In the short term, we should see prices hold at current levels and perhaps even some upside. But it’s important to keep in mind that as the market focuses on weather, any change in forecast could bring volatility."