Oversupply of grain undermines world prices

World grain prices are at a five-year low and will remain at that level for some time due to global oversupply.

The USDA said last week that world wheat stocks were at their highest levels in a decade. Wheat production was high but demand was low during the past 12 month, and some countries have decided to store their grains until higher prices return.

AWB grain marketer Chela Lamond said the short-term outlook for grain will remain bearish, as stocks are held off because of prices.

Russia and Ukraine had a good year, producing five million tonnes over estimations, which is keeping prices down for now, she said.