Australia grain prices drop on market regulation

The deregulation of the Australian grains market has seen a price drop of about A$130 (US$83.7) per tonne, a leading management firm said.

The grain sector has experienced significant problems since the market was deregulated eight months ago, said Emerald Group deputy chairman Mike Chaseling.

Chaseling said while the grains industry was probably coping well, not all are smooth due to the global financial crisis.

Grain values had dropped from A$400 (US$257.3) per tonne to just A$270 (US$173.6) in just eight months since the market was deregulated.