At the moment we’ve got extremely cheap wheat,” said Whitelaw. With dry weather hurting major growing regions in the northern hemisphere, tighter global supplies are working in Australia’s favor. Those are markets traditionally supplied by Russia and Europe, and Australia doesn’t normally sell into them because of the higher freight costs. From mounting tensions with China to trade disruptions caused by the coronavirus, Australian agriculture has been hit by a raft of curve balls in recent months. Wheat exports by country in 2019 were led by Russia, United States, Canada, France & Australia And last year, the country’s wheat exports fell by 5.2 percent, the lowest in 60 years. “The wheat market is based on price everywhere in the world. All Rights Reserved. As is presented in the graph, the wheat export in Australia decreased over time while the export in Canada and European countries increased with some fluctuations. (Bloomberg) — From mounting tensions with China to trade disruptions caused by the pandemic, agriculture in Australia has been hit by a few curved balls in recent months. Wheat futures in Chicago fell 0.9% Monday, a fourth day of losses and a further retreat from the six-year closing high of $6.54 a bushel reached on Jan. 5. Soybean Deal Signals China’s Early Jump Into 2021 U.S. Market, China Tells Farmers Not to Misuse Farmland in Nod to Food Supply Concerns, Participation of Indian Prime Minister Narendra Modi in the 5th Eastern Economic Forum Discussed in Moscow, Get exposure for your startup at RISE 2020, CreditEase’s Tang Ning: China’s Wealth Management Market is Undergoing Five Major Shifts, Meet 5 of the best startups selected to represent China at the largest technology event in Asia. Historically, China has been a swing buyer of Australian wheat, taking less than 10% of its total wheat exports. Overall, the value of Philippines’s imported wheat accelerated by an average 74.7% from all supplying countries since 2015 when wheat purchased cost $982.1 million. While the wheat industry seems to have avoided a major public hit from the tensions between Beijing and Canberra, there are signs beneath the surface. From mounting tensions with China to trade disruptions caused by the coronavirus, Australian agriculture has been hit by a raft of curve balls in recent months. Save. The following international wheat production statistics come from the Food and Agriculture Organization figures from FAOSTAT database, older from International Grains Council figures from the report "Grain Market Report".. Russia, the biggest wheat exporter, is adding to measures announced late last year after President Vladimir Putin told the government to cool food-price inflation because of sharp increases for staples like bread and sunflower oil. According to estimates from ABARES, Rabobank and Australian Crop Forecasters, Australia's wheat production in 2019-20 (July-June) is expected between 18-22.1 million mt, below the five-year average of 23.22 million mt. Russia has also now imposed taxes on exports to safeguard domestic supplies. Brad Thompson Reporter. China bought just 888 tons from Australia in November, the lowest since 2011, according to customs data compiled by Bloomberg. Dec 19, 2020 – 12.00am. Download the Australian Wheat information brochure. But Chinese officials gave early warning the country would strengthen inspections on Australian wheat shipments, raising concerns of grain exports being rejected or stranded in China. China bought just 888 tons from Australia in November, the lowest since 2011, according to customs data compiled by Bloomberg. Post forecast Australian wheat production at 24 million metric tons (MMT) for 2018/19, while barley production is expected to reach 9.5 MMT due to higher commodity prices and an expansion in the harvested area. Increased export supplies from Australia and weather woes in other parts of the world mean that the top buyers in this region -- including Indonesia, Thailand and Vietnam -- are likely to pivot back to Australia, according to Andrew Whitelaw, an agricultural analyst at Thomas Elder Markets in Melbourne. While the industry seems to have avoided a major public hit from the spat between Beijing and Canberra, there are signs something may be simmering beneath the surface. Before it's here, it's on the Bloomberg Terminal. The buoyant mood may spill over to the next crop because of the improved soil moisture. Wheat alone accounted for around $4.5 billion in Australian exports. But in 2019-20 (October-September), China was the number one destination for Australian wheat, accounting for 15% of all shipments. FAOSTAT provides free access to food and agriculture data for over 245 countries and territories and covers all FAO regional groupings from 1961 to the most recent year available.