Wheat price falls in Australia
Thursday, 15 November 2007
There has been a big fall in cash prices being offered to wheat producers in New South Wales.
The price has dropped about $30 a tonne for premium grades in the past week, with the cash price dropping below $400 a tonne.
Mike Chaseling, from the Emerald Group, says some buyers have reduced their bids, as they've started to fill their requirements with lower quality grains.
"The NSW market in particular was being held much stronger than markets", he says.
"There are big spreads to the Victorian market, for example, as a result of the very strong demand and in particular milling demand in NSW.
"There have been a number of things happen in the market where some of those millers have looked to switch into lower quality grains and that has taken the pressure off the ASX futures market.
"There appears not to be a squeeze on the horizon there and that has subsequently flowed through into cash markets. — Internet.
The price has dropped about $30 a tonne for premium grades in the past week, with the cash price dropping below $400 a tonne.
Mike Chaseling, from the Emerald Group, says some buyers have reduced their bids, as they've started to fill their requirements with lower quality grains.
"The NSW market in particular was being held much stronger than markets", he says.
"There are big spreads to the Victorian market, for example, as a result of the very strong demand and in particular milling demand in NSW.
"There have been a number of things happen in the market where some of those millers have looked to switch into lower quality grains and that has taken the pressure off the ASX futures market.
"There appears not to be a squeeze on the horizon there and that has subsequently flowed through into cash markets. — Internet.