International wheat futures continued their recent trend of wild fluctuations last week.
Chicago Board of Trade (CBoT) wheat traded a range of US84 cents per bushel and settled down $32 per tonne in Australian Dollar terms.
Higher protein wheat traded on Kansas City Board of Trade (KCBT) and European milling wheat futures on Matif also traded large price ranges through last week.
CBoT Black Sea feed wheat futures, on the other hand, have remained near contract lows as Russia continues to export the cheapest wheat on the world market in large volumes.
Historically, if prices hold or improve during the Northern Hemisphere harvest, it can bode well for price support into the Australian harvest.
This is because the market has a better idea of supply out of the key Northern Hemisphere exporters.
Lower supply, higher prices and higher supply, lower prices.
This year, the factors supporting global prices are tight global wheat stocks-to-use and average to below-average growing conditions in many areas of the United States and Canada.
Pulling prices lower are the relentless supply of Russian feed wheat on to global markets and an expected significant increase in US and global corn production.
The X-factor that can bump prices higher and lower on a daily basis is the Ukraine war.
And, more recently, there's increasing probability of India needing to import wheat this year.
These global dynamics are seeing end-users focus in on the quality they require.
Wheat is not wheat this year - with large price variations between quality and supply points around the globe.
In Australia, we are seeing a similar dynamic.
Queensland is trading a drought market with large price premiums over the southern states and Australian exporters have been juggling the premium they can extract over cheaper Russian grain for safer, quality Australian product.
On top of this, the Australian Dollar is bouncing around on a changing interest rate environment and inflation forecasts.
It dropped US2c at the end of last week.
Australian grain remains in demand, yet we're likely to see wide ranging prices between grades and locations in Australia as buyers crunch their numbers and try to make parcels of grain work.
Fifty three different buyer businesses have purchased Western Australian grain through Clear Grain Exchange in season 2022-2023.
More buyers have been searching to buy WA grain.
All the more reason for growers to offer their grain for sale at their price, rather than relying on a published bid for price discovery.
By offering your grain for sale, you create demand for it because all buyers can see it and try to buy it.
That's why grain is often selling at better values on Clear Grain Exchange than published bids.
For more information or to see what values are trading contact Clear Grain Exchange on 1800 000 410 or email support@cgx.com.au
