OPPapers.com

Grain Marketing

AACL GRAIN MARKETING
AACL Farmer Conference Call 19 June 2009

Disclaimer:
The aim of these notes is to provide a better understanding for Farmers of the processes involved in setting grain values with Australian Agricultural Contracts Limited (AACL). The information, calculations and projections contained in these notes are indicative only and do not constitute the provision of advice by AACL. Whilst AACL believes the information contained in these notes has a reasonable basis for being provided, neither ACCL nor any of its directors, employees or agents accept any liability for any action taken by any person in reliance upon the whole or any part of this document, nor for any errors or omissions contained in it.

MARKET OUTLOOK
Wheat
When we look at the major wheat exporting countries in isolation, production can be broken down to 3 major growing seasons and areas. The first and most important is the northern hemisphere winter wheat crop. The main winter wheat producers are USA, the EU and former Soviet Union countries, notably Russia and Ukraine. Another important wheat crop is the northern hemisphere spring crop, with Canada and USA being the major players. Finally, the winter wheat crops in the southern hemisphere countries of Australia and Argentina are looked at closely, with developments there contributing to international values. So at this point of calendar, the wheat market is in an uncertain period of time. The winter wheat crop harvest has started and the seeding of the northern hemisphere spring and southern hemisphere wheat crops are nearing completion. Predominantly the market is focused on exactly what tonnage will come from the current northern hemisphere winter wheat. For this reason the World Agricultural Supply and Demand Estimates issued by the USDA (United States Department of Agriculture) on June 10 have been closely looked at. WORLD WHEAT SUPPLY & DEMAND (USDA) IN MMT Beginning Ending Stocks Supply Demand Stocks Actual 126.98 609.7...