News
25.06.2009
Australia. Forecast wheat drop 'shouldn't impact prices'
A market analyst says a forecast drop in global wheat production is unlikely to lead to increased prices for Australian growers.
A new report from the Australian Bureau of Agriculture and Resource Economics predicts global wheat production to fall by 40 million tonnes next financial year.
The report blames global economic uncertainty and poor seasonal conditions.
Analyst Richard Koch says the decrease should not have a big impact on prices because it will be balanced by high stock levels from last season's harvests.
"So until we see a pretty major, fundamental change in the markets, a big crop production failure somewhere, I'd think we're still trapped in following these outside markets and the vagaries of those and global sentiment with regards to how economic growth's going," he said.
abc
