January 30, 2009
AWB expects wheat prices to be supported in short term
Wheat prices in the short term should be "at least supported at current levels," Stuart Richardson, general manager of the Australian commodities unit at agribusiness AWB Ltd. said late Thursday (January 29).
Demand remains strong but among some major exporter nations, supplies are increasing, he said.
Export logistics are operating at full capacity in Australia and Canada, Richardson said, while other major exporters, namely the European Union, Russia and the US appear to be building stocks after running them down to near record lows this time last year.
In the medium term, the critical issue for wheat prices will be the progress of the Northern Hemisphere winter crops and plantings of spring wheat in coming months, he said.
Richardson was commenting in a statement about a payment to growers who have consigned wheat from the late 2008 crop to collective sales pools operated by AWB.
Since then, US wheat futures stumbled Thursday on spillover selling from neighbouring markets and disappointing export demand, traders said.
Chicago Board of Trade March wheat ended down 17.25 US cents at US$5.78 a bushel, down from a near four-month high of US$6.45 on Jan. 6, but well up from a 20-month low of US$4.71 on Dec. 5.
