Harvesting of new wheat crop begins in Northern Hemisphere- Australian wheat prices remain soft in June

10-Jul-2024 04:49 PM

Chicago. Australian wheat prices fell in June due to softness in the futures exchanges of the US and the European Union. In Russia,

Ukraine and some other countries, preparation for harvesting of the unknown sowing of wheat also started in June, while there are indications of its pace increasing in July. 

The price of premium quality white wheat in Australia was running at $ 295 per tonne on June 3, which came down to $ 278 per tonne on June 28. Similarly,

the price of normal (standard) grade wheat fell from $ 287 to $ 267 per tonne. The interesting fact is that most of the producers in Australia have already sold most of their wheat stock and now the off or lean season of supply is going on there, but due to weak demand from Asian buyers,

pressure on its prices has started increasing. Asian buyers are now paying special attention to the purchase of wheat from the countries of the Black Sea region and the continent of North America. On the other hand, the weather in Southern Australia and Western Victoria province has started becoming unfavorable, which may affect the wheat crop.

But due to good rainfall in Western Australia during the month of June, the hope of improvement in wheat production has increased. The weather in the eastern coastal states remains largely favorable. 

Australia's government agency - ABARES, in its report released on June 4, had increased the wheat production estimate for the 2024-25 marketing season (October-September) by 12 percent to 291 lakh tonnes because on one hand there was an increase in the sowing area and on the other hand,

there was also hope of improvement in the crop yield rate. On the other hand, the industry trade sector has expressed the possibility of wheat production between 250-260 lakh tonnes. Some critics are estimating up to 280 lakh tonnes.