Market Morsel: Setting the pace

Market Morsel

The 2020 crop was huge, and it has had impacts upon logistics, with many traders having to pay big demurrage bills due to the blockages in the supply chain.

I thought it was worthwhile to look at the export program so far during 2021 against the backdrop of the seasonal pattern of exports.

We tend to have a very front-loaded export program. Exporters attempt to empty Australia ahead of competition coming online from our competitors in the northern hemisphere (see here). This seasonal pattern is replicated closely across wheat, barley and canola.

Exports of all these three commodities have been strong so far during the year. Even barley which is lacking China as a destination has been exporting at solid levels.

Australia must have a strong export program this year. We are staring down the barrel of another decent crop. We will be moving into the next marketing season with large stocks, but reducing them as much as possible will assist with pricing in the new season.