June 7, 2006

Australian wheat prices gaining from lower global production
 

Australian wheat is on a price-surge as international competition drove up prices for the 2006-07 season.

Benchmark Australian Premium White Wheat is at US$222 a tonne, up US$30 from last season, according to AWB's first price estimates.

National Pool manager David Johnson says while prices may still fluctuate, Australia stands to gain from low global production currently.

Prices for hard wheats favour Australia currently as the US hard red winter crop is experiencing some production difficulties, Johnson said. 

With Europe in harvest and the harvest in North Africa and Middle Eastern countries near completion, AWB is getting a clearer picture of the wheat supply situation, Johnson said.