February 6, 2009
World grain prices unlikely to increase
Grain prices are unlikely to increase as early figures showed more wheat was planted in the northern hemisphere during the winter, grain analysts said.
Global grain stocks have swelled by 30 million tonnes after last season's worldwide bumper harvests, preventing prices from rising.
USDA grains analyst Ed Allen said more wheat on the market will keep world wheat prices steady.
Wheat is currently traded at around US$300 per tonne. The price was around US$265 per tonne in December.
Grains industry consultant Robert Rees said there is likely to be less grain coming out of the US, Canada, Ukraine, the EU, China and India.
"There are some very promising signs for this year for the wheat industry in particular, because of weather conditions and planting intentions in the northern hemisphere," said Rees.
