GLOBAL trade tensions and the role of Russia, China and the US were just some of the themes discussed during the Australian Grains Industry Conference in Melbourne.
Grain Trade Australia chief executive Pat O’Shannassy said while there was concern about the world trade environment, the message turned more positive when US analyst, Bill Lapp from Advanced Economic Solutions, talked of how the combination of reduced wheat sowings, bad weather in several major export countries and the decline in world stocks was seeing a rise in international wheat prices.
“He talked about how the drought in Australia has already raised domestic market prices and was contributing to world uncertainty about supply, which bodes well for whatever crop Australian growers produce,” Mr O’Shannassy said.
“Importantly, the long-term outlook for wheat demand is also positive, which was explained by William Syers from Bunge Asia who described the growth in consumption of wheat-based foods by the increasing middle-class populations of South Asia and South East Asia.”
Other speakers included president of the Ukrainian Grain Association Nikolay Gorbachov and INTL FC senior commodity risk manager Dr Rory Deverell.
President Gorbachov talked of market changes and opportunities, with Ukraine likely to benefit from Chinese demand for corn (previously sourced from North America) should the trade war materialise with the US.
The conference is hosted by Grain Trade Australia, the Australian Oilseeds Federation and Pulse Australia.