Optimism from an anticipated record Australian wheat crop, estimated to be the country’s second-largest, is likely to outweigh trade concerns from troubled Australia-China relations in the first half of 2021.
Australia’s wheat market is set to welcome the new year with a positive outlook as cargoes are priced to attract ample export demand.
Despite price pressures from prospects of an improvement in wheat production, Australia has benefited from the recent rally in Russian wheat prices, which was driven by dry weather conditions and wheat export restrictions.
Nonetheless, Australia faces some risks in 2021, particularly logistical challenges from handling a huge 31.2 million mt wheat crop and the volatile Australian dollar.
Regaining, expanding market share
The La Nina weather phenomenon has pulled Australia out of three consecutive drought…
