Australian grain growers see limited benefit from global price surge

Global grain futures have risen about 5% in early July, driven by the smallest U.S. wheat crop on record, disruptions in Black Sea ports amid the Ukraine conflict, a record‑breaking heatwave in western Europe and concerns over a weak Indian monsoon and a possible El Niño.

In Australia, cash grain prices have remained largely unchanged. Old‑crop wheat trades around AU$350‑380 per tonne, canola around AU$800‑850 per tonne, and premium H1 wheat commands about AU$40 per tonne above average protein wheat. Ample supplies, a strong Australian dollar and a favorable start to the growing season have limited price transmission, with most growers outside Queensland and northern New South Wales reporting good weather prospects.