Grain Market Update - Wheat (April 2011)

The following graph shows the movement in Chicago (CBOT) December 2011 Wheat Futures price and the 2011/12 APW Multigrade price delivered port.

Prices have trended down since February 2011.  A dip during mid March was the result of economic factors other than grain supply and demand (predominately the Japanese tsunami).

Prices are likely to be volatile in the short term as markets respond to global climatic and economic conditions.  This may present opportunities to make favourable forward sales using SWAPS.

Currently the CBOT December 2011 Futures price is at A$316/tonne equivalent and the APW Multigrade price is at A$308/tonne, resulting in a negative basis of A$8/tonne. One SWAP December 2011 sell price was A$319/tonne at this time.