The issue of shipping wheat from Western Australian to the Eastern States is still there, but with wheat prices softening, it’s becoming less attractive.
So is the viability of importing grain from overseas.
A rough import parity figure of $310/tonne delivered Melbourne, or around $330/tonne upcountry to end-users is being quoted.
This means imports may not be viable at current prices, after the wheat price correction this month.
Australian wheat prices for November delivery are now $318/tonne, delivered Melbourne.
This represents a weakening of $32/tonne on peak October prices.
Barley, however, is holding very firm in comparison with wheat.
Melbourne price for feed barley is trading at $315/tonne, or just $3/tonne weaker than wheat.
That means wheat is priced right back into contention for use in livestock rations.
Recent heavy rains of up to 100mm through summer cropping areas in northern NSW and Queensland have revived the summer crops' prospects, taking some of the pressure out of the autumn feed grain supply outlook.
