Market Morsel: Wheat gaining in value

Market Morsel

The last few years have seen humongous Australian wheat production as the weather has been moist and forgiving for the most part.

This huge supply has been one of the factors leading to discounted values for what versus the rest of the world.

The more supply there is, the less a premium is required to be paid. In drought huge premiums, in surplus big discounts. It’s basic supply and demand.

Things are changing.

The spot wheat market in Australia has been moving back into the premium territory and has maintained those levels, especially on the west coast.