Wheat prices soften in Australia due to possibility of better production

08-Aug-2024 05:04 PM

Sydney. Due to good rains in major producing areas at regular intervals, the wheat crop scenario in Australia has improved, which is putting pressure on the prices of this important food grain.

There has been a softening trend in the prices of wheat since July. Apart from this, Asian countries are now giving priority to the import of wheat from the countries of the Northern Hemisphere and especially from America, Canada, Russia, Ukraine and the European Union,

where the arrival of new goods has started or is about to start. Everyone's eyes are focused on the wheat crop in Australia and the production figures of the European Union.

At the end of July, the price of premium quality white wheat in Australia was recorded at $ 264 per ton and the price of standard quality white wheat was $ 257 per ton. Earlier,

in the beginning of July, the price of premium wheat was $ 278 per ton and the price of standard wheat was $ 266 per ton. In this way, the price of wheat there fell by $ 14 and $ 9 per ton respectively in just one month.

With the start of harvesting of new crops in the countries of the northern hemisphere, the supply and availability of wheat in the international market has started increasing while the global demand has weakened.

Its effect is also being seen on the prices of Australian wheat. The weakening of the Australian dollar in comparison to the US dollar is also encouraging some sellers to sell their produce by reducing the price. According to trade analysts,

Australian exporters feel that if the export offer price of wheat is reduced by 2-3 dollars, many new buyers may come forward.

Most of the old stock of wheat from Western Australia and South Australia provinces has already been exported,

but producers in Victoria and the east coast states still have a good stock of wheat. Producers want to sell it as soon as possible because harvesting of the new crop is going to start within two months.