Grain Market Update - Wheat (June 2013)

The following graph shows the movement in Chicago (CBOT) December 2013 Wheat Futures price and the 2013/14 APW Multigrade price delivered port. Like canola, wheat prices have strengthened since late March. During the first part of the year, basis was trading close to neutral. Since mid April however, the basis has strengthened significantly, presenting some selling opportunities for those not yet in the market. At this stage, some analysts are still suggesting that prices could be significantly lower at harvest than they are now.

Looking forward, a continued period of volatility driven by world crop forecasts and domestic supply and demand may exist.

Currently the CBOT December 2013 Futures price is A$276/t equivalent and the APW Multigrade price is A$281/t delivered port, reflecting a basis of A$5/t.