Domestically the production signs for wheat have been improving with good winter rains in many states, but internationally the wheat price has shown no signs of picking up.
In Russia and the Baltic region, grain production levels are up and they are undercutting other export prices to hold on to market share into the Middle East.
Grains analyst Mark Martin said the low Australian dollar was helping buffer local producers, but prices were still falling.
“US and Russia fighting for markets in the Middle East is not necessarily directly impacting on Australian sales as we are more focussed on Asia,” Mr Martin said.
“We still hold a competitive freight advantage over the US and the Europeans into Asia.
“Prices are not good and the Russians are also competing against the French as well.
“But as they head into winter that makes their logistics of getting grain onto ship a lot more difficult.
Mr Martin predicted that could make the Australian wheat more price competitive.
“Prices would have fallen more if the Aussie dollar wasn’t so low, at a six year low, but we have to remember that the Russian Rouble is also low and at a 20 year low,” he said.
(Source – http://www.abc.net.au/news/2015-09-08/production-up-but-wheat-prices-under-pressure/6758462)