Market Morsel: The Russians are coming for your wheat price.

Market Morsel

It is important to compare our pricing against our competitors. In the world of wheat, the main competitor used to be the United States. These days, the big competitor is the black sea nations.

In recent months, we have seen wheat prices around the world declining. One of the major factors is the volume of wheat available from Russia and Ukraine, which is making its way onto the market.

If we look at the first chart below, we can see that Australian prices (WA in this instance) tend to have a premium over Russian origin.

During the period when the war first started, the price of wheat ex Russia increased dramatically, but then as grain flows increased from the region, we saw that premium erode.

Whilst Russia is a bit of a pariah on the global stage, countries with large grain deficits will still continue to purchase from them. As the wheat has retreated in Russia/Ukraine, then that has dragged other nations (including ours) price down.