Biofuel demand press Aussie grain prices
Grains prices are set for further gains next year as demand for grains to make biofuels intensifies, Australia, the world’s fifth-biggest wheat exporter.
For Australia’s farmers, domestic returns on benchmark Australian Premium
White wheat should increase more than 50% next year, according to the Australian
Bureau of Agricultural and Resource Economics (Abare).
Australian
malting barley prices are forecast to rise to A$346 a tonne from A$328 in
2006/07 and A$202 in 2005/06, Aabare said. For farmers, however, it is difficult
to capitalise on these prices because droughts are hampering crop growing.
Australia’s exports of wheat in 2007/08 are likely to be nearly halved
as stocks run out after two successive years of drought, exporter AWB Ltd
estimated. ABARE said that Australian wheat production in 2007/08 will be around
12.7 million tonnes, barley about 5.5 million tonnes and canola around 931,000
tonnes.
These winter crop figures are significantly higher than last
year, but still far below average.
Related
website:
Australian Bureau
of Agricultural and Resource Economics
Related
folder:
Dossier AllAbout Bio Energy
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