Australia's domestic prices holding up well

Despite fluctuations in the Australian dollar, the larger crop size and lack of current export interest in feed grain, domestic prices for wheat and barley are holding up well.

Wheat for key stockfeed millers in Melbourne is quoted at US$215 a tonne delivered this week.

The quality of wheat trading into these markets is either an ASW or General Purpose standard.

Some wheat recently harvested between Lismore and Hamilton has been described as shot and sprung. This wheat will be graded below the GP standard as it has a low falling number, high screenings between 8% and 15% and low test weights of 66kg to 68kg per hectolitre.

This lower-quality feed wheat is yet to test the market but initial ideas from buyers suggest that prices will be US$20 below the current US$215 stockfeed price.

Perhaps the new NIR energy tests suited to pig and poultry feeding can determine the best estimation of the animal performance of these wheat parcels.

Although wheat is the most dominant cereal grain produced in Australia, oats remain an important grain with some favourable returns for those growers who achieve milling quality. Unfortunately, it has been difficult this season for oat growers to achieve the sought-after grain density of oats for human consumption milling.