December 2, 2004

Australian Wheat Prices Not Likely to Improve in Near Term

Despite ABARE's forecasts of a smaller national crop this year, wheat prices are not likely to improve in the short term.

According to grains analyst Mark Martin, growers will have to wait for the first quarter of next year to see any lift in returns.

"Chicago's certainly got the potential to lift thirty to forty cents," he said.

"We traditionally see that during the March, April, May period as they get the scares. The other one is the dollar; the dollar also has the potential to slide. The US is, I won't say coming back into favour big time. But we're starting to see the first signs of a small change there, so I'm not all gloom and doom. I think that there possibly is a little bit of upside going down the track."