Fairfax Media Network

Weather News

El Niño looms over grain markets

Warwick Long, Tuesday June 17, 2014 - 12:28 EST

Grain prices in Australia are staying higher than world market price movements due to fears of a looming El Niño.

The price difference is especially stark in areas of New South Wales and Queensland as grain traders worry about the impact of the traditionally drying weather system on an area already recovering from drought.

Grain trader, Graham Allen, from MC Croker, says the concern means Australian prices are performing well in a falling world market.

"We've got a price difference," Mr Allen said.

"Our price has remained strong relative to US futures."

"We've been able to absorb $22 of that drop and that's mainly through the threat of the dry conditions going forward with the threat of El Niño."

Nathan Cattle from ProFarmer Australia says a price spread between northern grain producing areas, like Brisbane, is about $50 a tonne more than southern areas, like Port Adelaide.

"The market is trading forecasts and trying to make a guesstimate over how that is going to impact supply and how that is going to impact on their trading book or the demand up there."

"The trade is factoring that into prices now."

"A lot of guys have had a below average start to the year, unfortunately."


- ABC

© ABC 2014

More breaking news

ABC News
Sydney Morning Herald
National Nine News
News Limited

Display Your Local Weather

Weather News

Icy weather in NSW to ease; gale force winds leave Queensland homes without power

08:40 EST

The Bureau of Meteorology (BoM) says icy and windy weather affecting parts of the NSW central-west and Blue Mountains will ease today after southeast Queensland was lashed by gale force winds overnight.

Snowfalls, heavy rain recorded across New South Wales, Victoria, Tasmania

00:25 EST

Parts of New South Wales, Victoria and Tasmania were blanketed in snow, as a cold snap moved across the south-east coast.

Melbourne weather: BoM warns of icy winter blast as snow hits Victoria

21:22 EST

Victoria is in the grip of a cold snap, with snow falling across the state and Melbourne bracing for a wintry weekend.