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 Wheat up 2.7pc in modest rally 

Wheat up 2.7pc in modest rally

20 Dec, 2011 10:23 AM
WHEAT prices have rallied slightly in the past week.

There was a 2.7pc lift in Chicago Board of Trade (CBOT) March 12 futures to just under US600 cents a bushel.

This price rise has been triggered by concerns about drought in both Russia and South America.

Corn values are also supportive of wheat prices, with reports of Mexico suffering one of its worst droughts on record.

Mexico is the world’s fourth largest corn producer.

Wheat futures in Europe have also rallied, to be at the highest levels since October.

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Date: Newest first | Oldest first
If only the single desk was around, world prices wouldn't have an effect on our grain prices.
Posted by blahblah, 20/12/2011 1:56:34 PM
Yeah, and WA growers would be receiving $20-$30/T less for their wheat. No thanks!
Posted by WA wheat grower, 21/12/2011 7:10:55 AM
One of the things we lost when we lost the single desk was the ability to leverage the storage and handling costs, no transparency at all now and it has all gone up significantly.

If it were still in place you'd find pool prices would be a fair bit higher than even the current ECP figures because of the ability it had to hedge large tonnages which now goes into the traders pockets,

You only think you'd be getting less WA, you don't know, typical of your lot in the west, no domestic market but think you can tell us in the eastern states how it works.

Posted by mark2, 21/12/2011 1:09:33 PM
With the demise of the single desk I felt the best thing a farmer could do with all his productive capital is to invest it all into the grain trade and not produce a thing, I have been exonerated for this decision, as a result today while hard working farmers like blah are taking all the production risk, taking all the marketing risk and staying awake at night wondering how to balance the budget with the lowest real grain prices in history, they can think of me.....deciding how I will spend their hard earned money on my next holiday, so stop blogging and get back to work
Posted by Cunning stunt, 24/12/2011 8:58:17 AM

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Poll Date: 19 December, 2011

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