AUSTRALIAN grain exporters are having no problem moving the nation’s bin-bursting 2016-17 crop, with the latest Australian Bureau of Statistics data showing grain exports smashing previous records.
Grain from Australia has remained competitive on the global stage throughout the post-harvest export period, meaning exporters remain keen buyers of grain.
The most recent data from the bureau showed total exports for the seven months to April of 24.06 million tonnes, 13 per cent stronger than the previous record set in the first seven months of 2011-12 of 21.24 million tonnes.
ProFarmer analyst Angus Thornton said there had even been a spike in Australian basis for old crop, with exporters paying a premium of up to $17 a tonne over world futures values.
He said APW wheat in Port Adelaide firmed $18 a tonne in May, while Chicago Board of Trade futures values were less than $1 a tonne firmer in the same period.
South Australia has been leading the charge in terms of grain exports.
Viterra logistics and commercial relations general manager Jonathan Wilson, which handles most grain exports out of SA, said the company had exported its equal highest tonnage of grain to the end of May.
While many growers have been willing sellers at prices superior to those on offer during the first four months of the year, others are still holding onto remaining stocks.
However, Clear Grain Exchange managing director Nathan Cattle said a lot of old crop was changing hands via his business.
“In the last two weeks Clear Grain Exchange has traded more than 100,000 tonnes to push through more than one million tonnes traded this season representing year on year growth of 90 per cent,” he said.
He said it was a sellers’ market. “The pendulum of market power is currently in favour of the seller with much more volume sitting behind the bid than the offer currently, which is supportive of price,” he said.