Grain Report

Dairy Australia generates a grain report to help farmers make more informed decisions when buying grain. The grain report is updated 40 times per year and provides an independent and timely assessment of grain markets in each dairy region.

Grain prices by location

Select a location to view the grain price:

International and national summary

National background comments: report for the week ending 7 May 2021.

The next update will be on Friday 21 May 2021. Direct links to reports on each dairy region immediately follow this international and national summary for grain.

Driving Prices Up

• Concerns surrounding Brazil’s weather is driving global corn prices higher. Fears continue to grow regarding the impacts of ongoing dry weather and late plantings on yields across the country.
• The condition of France’s winter crops have declined further this week as the country continues to deal with the impact of recent a cold snap and drier-than-usual weather over the past month.
• Strong US domestic demand for cereals are continuing to support global grain prices.

Driving Prices Down

• Sources suggest China’s pig herd is unlikely to rebound until at least mid-2021, as livestock farmers remain cautious after falling pork prices, expensive feed costs and newer strains African Swine Fever being reported in the country.
• The Russian government is looking at reducing its recently implemented export duties on soybeans by 20% in early July, working to reduce domestic price inflation.
• Wheat production within Argentina has been forecast to hit 19 million tonnes next season, which is reportedly an all-time high for the country. The record estimate is driven by increased planted area and higher yields following improved soil moisture conditions.
  
  

Global Trade News

• A private Philippines buyer, San Miguel Corporation (SMC), purchased 60,000 mt of feed wheat from Graincorp, at an estimated price at around $320/mt (cost and freight) for June shipment.
• Tunisia’s state grain buyer, the Office des Cereales (ODC), has released a tender for 50,000 mt of feed barley for June delivery across two separate shipments.
• South Korean feed production group, the Korea Feed Association (KFA) have purchased 128,000 mt of corn from CHS spread across two shipments for August and October delivery.
• Algeria’s state grain buyer, the Office Algerien Interprofessionnel des Cereales (OAIC), have purchased 200,000 mt of wheat for May or June delivery, depending on the location of the seller.
  
  

Local News

• Local exports of wheat hit their highest level since 2017, with 2.28 million mt of wheat exported in March, with Vietnam, Indonesia and China as the primary export destinations.
• Western Australia experienced heavy rainfall earlier in the week, with some regions recording approximately 90mm of rain, with local sources suggesting growers have been provided with a strong Autumn start as planting continues across the state.
• Farmland values have increased for the seventh year in a row, with all states reporting increases in median price per hectare for the first time in 15 years.
• Western Victorian and South Australian cropping regions remain relatively dry and are yet to receive a supportive autumn break. Some growers are dry sowing, but sources suggest rainfall will be required soon to avoid prospects declining.

Price change in table below reflects moves since previous report (30 April 2021)

All Location Grain Prices