WHEAT futures have risen in response to Russia’s increased mobilisation in Ukraine, but growers say more needs to be done to address discounts on Australian grain.
Chicago Board of Trade wheat futures hit their highest levels since March this month, driven by trader concerns over Black Sea exports.
CBOT wheat futures were listed at $AU486/tonne ($US8.58/bushel) as of Monday.
Australian ASX wheat futures increased $19 in a week to $445 a tonne as of Friday. Prices for all wheat grades departing Melbourne have remained firm, with APW listed at $440.
Grain Producers Australia southern region director and Wimmera grower Andrew Weidemann said a lack of competition in Australia was affecting prices.
“When you haven’t got a lot of competition in the market, you’ll see prices that are depressed the way they are,” Mr Weidemann said.
A lot of farmers had not forward sold grain this year due to concern over quality in a wet season, so would be reliant on prices at harvest, Mr Weidemann said.
“There’s a real concern of the quality that may actually come out,” he said.
Mr Weidemann said the discount for Australian wheat was evidence of the need for an Australian Competition and Consumer Commission inquiry.