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 14 January 2022.

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

Driving Prices Up

• Brazil’s food body has lowered its production forecasts for corn and soybeans amid ongoing drought conditions. Brazil’s total corn crop output was cut to 112.9 million mt from last month’s 117.2 million mt forecast. Brazilian soybean production was reduced to 140.5 million mt, 1.6% lower than December.
• The USDA’s World Agricultural Supply and Demand Estimates has cut its forecasts for global corn production and ending stocks, though increased US corn production has helped ease market concerns somewhat. Cuts to global soybean stocks and output was also forecast due to reductions in production across South America.

Driving Prices Down

• The USDA’s World Agricultural Supply and Demand Estimates report is forecasting increased US ending wheat stocks due to reduced domestic use and exports. Increased US winter wheat planted area for the coming season is also weighing on futures.
• China’s Agriculture Supply and Demand Estimates report has cut its forecasts for feed and industrial corn demand by 3 Mmt for the 2021/22 period. This has been driven by weak hog prices, and increased exports of competing feed grains (barley and sorghum in particular).

Global Trade News

• South Korea's feed making association, Major Feedmill Group (MFG) booked 55,000 mt of feed wheat from Louis Dreyfus paying US$334/mt CFR to be loaded in Feb/March. Large feed wheat volumes are meaning Australia is proving a competitive option for the Asian market.
• Dry bulk freight rates continued to move higher for the third week in a row as increased demand for both coal and iron ore from China offset a decline in dry bulk freight requirements across the Pacific and trans-Atlantic.
• The Turkish Grain Board (TMO) has issued a tender set to close next Thursday for 345,000 mt of feed barley for shipment during the February/March.
• Korea Feed Association has purchased 130,000 mt of corn at an estimated US$334/mt CFR for March and April, delivered from Viterra.

Local News

• The release of Australian November export figures shows China as Australia’s largest market for wheat exports, purchasing a full 30% season to date and overtaking Indonesia as the number one wheat buyer. China continues to buy large amounts of wheat with over 1.6 Mmt expected to be shipped by the end of Jan.
• Western Australia has now recorded over 21 Mmt of receivals (a state record) with more grain still to be harvested. GrainCorp receivals have now hit 12.6 Mmt with Viterra nearing 5.6 Mmt for the season.

Price change in table below reflects moves since previous report (07 January 2022)

All Location Grain Prices