Grain prices to rise in coming season

摘要

There is enough strength in the international grain market to ensure there will be no cheap Australian grain in Australia over 2002. This applies to the domestic grain scene as well. It will give some joy to grain growers, but the price joy needs tobe moderated in view of poor yield prospects in a number of key Australian grain producing areas. For Australian intensive livestock producers the feed costs for 2002 are likely to exceed those of 2001, by about 20 percent. A rise of this magnitude meansthat livestock feed costs must rise. The rise will be too big to be absorbed by adjustments of the feed components, without an overall price increase. The grain futures trading options that were available through the Sydney Futures Exchange have been wound back.