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Grain prices to stay low

Story Added : 17th November 2009
Updated: 1 minute ago

International grain prices are at a five-year low and will stay that way for some time, due to world-wide oversupply.

The United States Department of Agriculture reported last week that world wheat stocks were at their highest levels in a decade.

Production has been high and demand low for wheat over the last 12 months, and some countries have decided to stockpile grain until higher prices return.

AWB grain marketer Chela Lamond says the short-term outlook for grain will remain bearish.

"People are holding off a little bit because of prices," she says.

"Russia and Ukraine have had a really good year, and so they are up 5 million tonne on what was being estimated.

"They have outweighed the other countries that have come down in their tonnages, so there is still a lot of wheat out there and that is keeping prices down for now."

Story Added by ABC.
Date Added : 17th November 2009

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