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Plenty of Demand for Western Australia's Bumper Grain Crop

09 January 2014

AUSTRALIA - With the last of the Western Australia's bumper grain harvest trickling in, it's now more critical than ever to keep an eye on what's driving commodity prices.

Drought in eastern Australia, a record wheat crop in Canada and changing demand in overseas markets are making for an interesting year for selling grain, reports ABC Rural.

WA farmers have delivered the biggest crop in history with the total tally received by bulk handler the CBH Group now sitting at 15.78 million tonnes.

Jason Craig is the general manager of marketing and trading at CBH, which acquires and markets about half of WA's grain crop.

He says demand is strong, particularly from Asia and the Middle East.

"It started early in the harvest last year. Despite a larger crop we've been very competitive in the marketplace.

"And that's a result of difficulties also out of other key markets, the Black Sea and out of North America," he said.

Mr Craig says a lot of grain is moving early.

"We've had record shipments for November, December, January and February.

"Whilst that does happen in tight years it is a little bit unusual in a year when it's a big crop," he said.

The dry conditions on the eastern seaboard and restricted ability of New South Wales and Queensland to fill exports also opens a door for WA grain.

"That'll provide more access for Western Australia and South Australia into the marketplace, so we will displace some of those tonnes," Mr Craig said.

TheCropSite News Desk



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