Grain Market Update – Wheat (May 2014)

The following graph shows the movement in Chicago (CBOT) December 2014 Wheat Futures price and the 2014/15 APW Multigrade price delivered port. The graph shows an increasing price trend for the early part of the year. For this period the basis has been positive, averaging a premium of approximately A$25/t over CBOT December 2014 Wheat Futures.

Since the beginning of March, the APW Multigrade price has traded at an average of $45/t above the Decile 8 APW price. This has prompted some growers to commit a small percentage of their forecast 2014 production to capture the very high prices on offer.

Currently the CBOT December 2014 Wheat Futures price is A$296/tonne equivalent and the APW Multigrade price is $319/t delivered port, reflecting a positive basis of A$23/tonne.