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Drought-driven market jumps during AGIC week

by Henry Wells, 06 August 2018

MARKETS jumped throughout last week while the Australian Grains Industry Conference was underway in Melbourne and while the production, trade and government sectors were shaping their responses to the worsening drought which is driving eastern Australian grain prices to new recent highs.

Traders said the cost of drought feed last week rose about 10 per cent, with the price of trailer-loads of wheat for paddock feed climbing from around $450 per tonne to $500/t delivered southern New South Wales tablelands.

New-season Australian eastern wheat values as indicated by January 2019 futures shot from $333/t to $393/t  in the three trading weeks to 3 August, with the rise reflecting worsening and widening drought conditions which have the market fearful of a shortage in Australia’s wheat supply.

Conference wrap

Final conference sessions on Thursday encouraged open trade, avoidance of trade barriers, and aspiration towards private capital investment in major projects such as road and rail.

Grain Trade Australia chief executive Pat O’Shannassy said the topic of trade facilitation through open and efficient markets came up time and time again with speakers throughout the sessions.

The AGIC 2018 conference was hosted by Grain Trade Australia (GTA), the Australian Oilseeds Federation and Pulse Australia.

Thursday’s conference dinner saw recognition by CBH chair Wally Newman of the work of retiring GTA chair Peter Reading, and welcoming of incoming chair, GTA director and Grain Link WA managing director Andrew Goyder.

Speaker presentations can be viewed online at https://www.ausgrainsconf.com/

Go to the website and click on the AGIC Australia tab, scroll down to presentations to find most of the speaker presentations pdfs and the youtube clips of each session’s video/audio.

 

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