Wheat rose today on news in a statement from the Australian Bureau of Agriculture and Resource Economics which said drought conditions could significantly delay the Australian wheat harvest, and also could have a detrimental effect on the quality of the grain produced.
This seems like it's only a upward blip in the road, as there's so much wheat available for export this year, any news will cause a slight upward movement for wheat.
The December crop report from the Australian Bureau of Agriculture and Resource Economics shows wheat exports for the country are expected to reach 12.3 million tons, a significant increase from the 7.5 million tons exported last year.
With Australia attempting to compete in the premium wheat market of Taiwan, this probably couldn't have come at a worse time.
At 10:30 a.m. today on the Chicago Board of Trade, wheat futures for March delivery rose 2.5 pecent to $4.93 a bushel.
Showing posts with label Premium Wheat. Show all posts
Showing posts with label Premium Wheat. Show all posts
Tuesday, December 9, 2008
Saturday, December 6, 2008
Australia Aiming to Compete in the Lucrative Taiwanese Premium Wheat Category
With record-setting wheat production this year, prices have been plummeting, putting pressure on the U.S., the world's largest exporter.
If that's not enough, the high-end wheat market is now receiving potentially more competition, as Taiwanese wheat importers are visiting Australia to get a first-hand look at how they produce, handle and transport their wheat.
AgFarm, an Australian grain trading specialist, is hosting the event, where seven flour millers from Taiwan observe the practices.
In a trial run last year, the Taiwanese flour mills imported 8,000 metric tons of high protein wheat.
Taiwan is known for its fickleness concerning quality standards of wheat, and the exercise is for the purpose of learning how Australian wheat producers can meet those rigid standards.
The reward is a premium price paid for meeting their specifications.
Historically, the U.S. has been the dominating force in this premium market, and it could signal a significant new competition if Taiwan is convinced Australia can consistently deliver the high quality, high protein wheats.
At this time there is no commitment from the Taiwanese, but after the tour AgFarm is hoping to secure orders for the wheat.
If that's not enough, the high-end wheat market is now receiving potentially more competition, as Taiwanese wheat importers are visiting Australia to get a first-hand look at how they produce, handle and transport their wheat.
AgFarm, an Australian grain trading specialist, is hosting the event, where seven flour millers from Taiwan observe the practices.
In a trial run last year, the Taiwanese flour mills imported 8,000 metric tons of high protein wheat.
Taiwan is known for its fickleness concerning quality standards of wheat, and the exercise is for the purpose of learning how Australian wheat producers can meet those rigid standards.
The reward is a premium price paid for meeting their specifications.
Historically, the U.S. has been the dominating force in this premium market, and it could signal a significant new competition if Taiwan is convinced Australia can consistently deliver the high quality, high protein wheats.
At this time there is no commitment from the Taiwanese, but after the tour AgFarm is hoping to secure orders for the wheat.
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