News 202 views last update:6 Aug 2012

Biofuel demand press Aussie grain prices

Grains prices are set for further gains next year as demand for grains to make biofuels intensifies, Australia, the world's fifth-biggest wheat exporter.

For Australia's farmers, domestic returns on benchmark Australian Premium White wheat should increase more than 50% next year, according to the Australian Bureau of Agricultural and Resource Economics (Abare).

Australian malting barley prices are forecast to rise to A$346 a tonne from A$328 in 2006/07 and A$202 in 2005/06, Aabare said. For farmers, however, it is difficult to capitalise on these prices because droughts are hampering crop growing.

Australia's exports of wheat in 2007/08 are likely to be nearly halved as stocks run out after two successive years of drought, exporter AWB Ltd estimated. ABARE said that Australian wheat production in 2007/08 will be around 12.7 million tonnes, barley about 5.5 million tonnes and canola around 931,000 tonnes.

These winter crop figures are significantly higher than last year, but still far below average.

Related website:
Australian Bureau of Agricultural and Resource Economics  

Related folder:
Dossier AllAbout Bio Energy

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