Grain Report

Dairy Australia generates a grain report to help farmers make more informed decisions when buying grain. The grain report is updated 40 times per year and provides an independent and timely assessment of grain markets in each dairy region.

Grain prices by location

Select a location to view the grain price:

International and national summary

National background comments: report for the week ending 4 June 2021.

The next update will be on Friday 18 June 2021. Direct links to reports on each dairy region immediately follow this international and national summary for grain.

Driving Prices Up

• Brazil’s corn crop continues to be downgraded as dry conditions impact their second crop. A local consultancy, Agrural, have cut production estimates back to 90.9 million mt. This is down 11% year-on-year.
• Warmer weather has been forecast for the end of the week in the United States. This is expected to negatively impact soybean crop development.
• Chinese buying of US corn has hit record levels over the past week, helping to put upward pressure on prices.

Driving Prices Down

• The US corn crop appears to be in better-than-expected condition with this week’s USDA report finding 76% of the crop ranges from good to excellent condition, well above what analysts were expecting.
• Ukraine is set to produce a larger grain crop this year, of 73.6 million mt, according to agricultural consultancy APK Inform. Wheat is expected to make up 27.6 million mt of the total production. Barley production is anticipated to be higher, at 8 million mt, and corn production is set to reach 35.7 million mt.
• Production forecasts for soybeans in Argentina have been increased by 500,000 mt, to 43.5 million mt, for the current season after better than anticipated yields.
  
  
  

Global Trade News

• Saudi Arabia booked 562,000 mt of milling wheat for July-Sept shipping at an average price of US$300/t CFR (cost and freight). That is US$28.50/t dearer than their last tender in April.
• Russia has implemented its new floating tax system for agricultural exports this week. For the week 2-8 June, the wheat tax has been lowered to US$28 per tonne, the barley tax has increased to US$40 per tonne and the corn tax is up to US$52 per tonne. The purpose of the export taxes is to manage domestic grain prices.
• China has reconfirmed its commitment to the US Phase One deal. The value of the two-year trade deal is US$71.2 billion. According to US census data, 15 months into the deal, China had purchased US$34.2 billion of US goods, which is reportedly lower than anticipated levels.
• The European Union wheat balance sheet is expected to remain tight in the 2021/22 season, as increased production is offset by low carryover.
  
  
  
  

Local News

• The World Trade Organization is setting up an expert panel to review the China-Australia barley case which involves the 80.5% duties imposed by China on Australian barley in May 2020.
• Forecast rainfall over the next fortnight throughout SA, NSW and Victoria is expected to ensure yield expectations are met in most regions of Victoria and NSW. This will benefit germination in South Australia, with the state in particular need of rainfall.
• The NSW Farmers Association says the cost of the mice plague on the state’s winter crop may top $1 billion, based on an analysis of its survey of more than 1,700 farmers. The NSW government recently announced a $50 million mouse control package.

Price change in table below reflects moves since previous report (28 May 2021)

All Location Grain Prices