Wheat is an undifferentiated commodity for the most part. In general terms, except quality parameters, price is the king when it comes to who wins business.
As a country which exports the majority of our wheat, with the exceptions being drought years, we have to look to the rest of the world. It is important, therefore, to regularly assess how we compare to other nations which export wheat.
I have chosen a couple of nations, France, Russia and US gulf, with comparable protein levels. These values have been converted into USD/mt FOB (free on board). This is to provide a more direct comparison.
These charts are intended to indicate the trend of how we compare to the rest of the world.
It continues to be a story of East vs West. The eastern states seem to be lagging behind the rest of the world since harvest started.
Western Australia, on the other hand, has maintained strong pricing in comparison to overseas pricing levels.
Charts below – WA, VIC, NSW & SA