Copyright © 2019 Caixin Global Limited. 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. Australian Grain Export Pty Ltd (AGE) is a grain marketing company which was founded in 1996 in the Mid North of South Australia (Maitland). Australia has already sold more than a dozen wheat shipments worth almost $250 million; In May, China applied an 80 per cent tariff on Australia's barley exports which were worth $1.6 billion a year. The blue bars represent the USDA's forecast for 2020-21 wheat exports by country, measured against the primary vertical axis. “The wheat market is based on price everywhere in the world. Still, Australia’s apparent new found dominance in the global market may help soften the blow. Brad Thompson Reporter. International demand for Australian wheat has collapsed and exports are likely to hit an almost 50-year low as Indonesia and other major customers look to cheaper sources in the Black Sea. The most recent exports are led by Coal Briquettes ($57.2B), Iron Ore ($48.1B), Petroleum Gas ($17.6B), Gold ($16.1B), and Aluminium Oxide ($6.66B). Vaccine Shift Stirs New Unease as 128 Million Join Line, Stocks, Yields Fall as Reflation Trade Sputters: Markets Wrap, Pfizer Investigates Post-Vaccine Death for Possible Connection, Wall Street Fumes at 11th-Hour Rule From Trump Bank Watchdog, Bitcoin Is Unlike Any Other Bubble We’ve Seen So Far. “In recent years, we haven’t had the volumes to meet the demand of Southeast Asia,” said Whitelaw. Wheat is already one of Australia’s major crops. Wheat accounts for 12.5% of all agricultural products exported from the country. Country Quantity tonnes 1 Russia: 33,025,971 2 United States: 27,299,214 3 Canada: … China bought just 888 tons from Australia in November, the lowest since 2011, according to customs data compiled by Bloomberg. 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. Those are markets traditionally supplied by Russia and Europe, and Australia doesn’t normally sell into them because of the higher freight costs. (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. A field of harvested wheat at a farm near Gunnedah, New South Wales, Australia, on Nov. 10, 2020. The country’s largest listed bulk grain handler GrainCorp expects its underlying profit to halve this financial year, and grain exports to drop dramatically. Russia Exports By Country Value Year; China: $57.32B 2019 Netherlands: $44.79B 2019 Germany: $28.05B 2019 Belarus: $21.71B 2019 Turkey: $21.15B … Download the Australian Wheat information brochure. China bought just 888 tons from Australia in November, the lowest since 2011, according to customs data compiled by Bloomberg. NOTE: *Estimate; **Forecast; Exports include the grain equivalent of wheat flour. “If things stay bad in Russia, then we’re talking about a crop which will be diminished,” said Whitelaw. All Rights Reserved. At the moment we’ve got extremely cheap wheat,” said Whitelaw. Still, for wheat farmers, the outlook has seldom been better. Photo: Bloomberg, Caixin China Biz Roundup: Tech Titans Slammed for ‘Algorithmic Bullying’, Gallery: Quarantine Center Under Construction in Covid-Hit City, Exclusive: CSRC Threatens Huarong Securities Over Risky Assets, Chinese SOEs May Speed Up Delisting U.S. Shares Amid Trump’s Crackdown, Sources Say, Coronavirus Lockdown Disrupts Logistics Across Northern China, Hong Kong Offers $46.4 Million to Employers Hiring Local College Graduates. Wheat exports from Australia to China are expected to join a list that already contains barley, sugar, red wine, timber, coal, lobster, copper ore and copper concentrates. 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. 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. 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. Australia exports of Starch; wheat was $52,224.33K and quantity 127,751,000Kg. “In recent years, we haven’t had the volumes to meet the demand of Southeast Asia,” said Whitelaw. Stretched capacity could mean traders are less willing to buy grain shorter term, if abundant supplies are available down the track, Whitelaw said. 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. 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. That then creates a requirement for wheat to go to the big importers in North Africa and the Middle East, he said. 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".. 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. Still, Australia’s apparent new found dominance in the global market may help soften the blow. 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. Still, a buoyant mood prevails with the recent rains and it may spill over to the next crop. But Russia has now imposed taxes on exports, creating opportunities for competitive wheat from other shippers. Wheat production is estimated at 28.9 million tons in 2020-2021, 91% more than a year earlier, according to the September crop report from the Australian Bureau of … In 2016 the value of Australia's agriculture exports was $44.7 billion – approximately 14 per cent of our total goods and services exports. That creates an opening for sales of Australian wheat to the big importers in North Africa and the Middle East. Australia wheat exports poised to deliver $6b windfall . #6 Cereals (AUD$7.1 billion) Whilst we love our Weet Bix and Fruit Loops, cereal is a top export of Australia accounting for just under 2% of all exports. Still, for wheat farmers, the outlook has seldom been better. There is a tight … The given line graph compares the wheat exports over three different parts of the world namely Australia, Canada and the European Community from 1985 to 1990. Furthermore, unexpectedly strong import demand in China and Pakistan helped bolster global trade to a record this month due to unprecedented demand from both countries and … 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. Russia has also now imposed taxes on exports to safeguard domestic supplies. Support quality journalism in China. Australian wheat producers have been dragged into the growing political and trade tussle between Canberra and Beijing, after China warned it would put Australian exports … Australian and Chinese researchers are working closely together to increase the suitability—and ultimately the amount—of Australian wheat being sold to China. U.S. Before it's here, it's on the Bloomberg Terminal. Subscribe to Caixin Global starting at $0.99. Wheat alone accounted for around $4.5 billion in Australian exports. Australia is one of the world’s leading exporters of the ubiquitous staple used in everything from bread to pasta and cakes, and this year the country’s on track to harvest its second-largest crop ever -- more than 30 million tons -- after widespread rains turbocharged production. Historically, China has been a swing buyer of Australian wheat, taking less than 10% of its total wheat exports. In 2018, the countries that had a largest trade value in exports than in imports of Wheat were Russia ($10.7B), Canada ($5.76B), United States ($4.9B), France ($4.17B), and Australia ($3.23B).. “I actually don’t see many headwinds at the moment,” he said. Top Wheat Importing Countries Egypt is … Another dry summer in key regions of Australia prompted analysts to lower their forecast for the country's wheat production and exports. Among the above countries, the fastest-growing suppliers of wheat to Philippines since 2015 were: Romania (up 10,633%), Australia (up 237.2%), Ukraine (up 104%) and United States (up 38.8%). Contact editor Yang Ge (geyang@caixin.com). Australian wheat is highly valued for its high performance across a full range of uses. Australia's wheat harvest is expected to be second highest ever this season, Source: Abares 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. Post expects sorghum production to increase to 1.6 MMT in 2018/19 as a result of a larger harvest area and stronger export and domestic demand. With dry weather hurting top growing regions in the northern hemisphere, tighter global supplies are helping Australia’s case. In terms of the harvest, moving such a large volume this year may pose challenges. Australia on Wednesday cut its wheat production forecast for the 2019/20 harvest by more than 11% as an unrelenting drought across the country's east coast threatens crops for a third year in a row. And last year, the country’s wheat exports fell by 5.2 percent, the lowest in 60 years. Australia’s wheat exports have fallen to over Nine million tonnes in the 2018-19 Season, the lowest in the last 11 years. Australia is a world leader in the production of quality, safe and clean, food-grade wheat. We export around $6 billion of wheat every year. AGE has a proud history in Australian agriculture sector and has firmly established itself over the past 20 years as a very diversified and progressive company synonymous with quality and service. Wheat prices for major consuming and exporting countries surged from last year despite record global production and ending stocks. Country; Afghanistan : Albania: Algeria: Angola: Argentina: Armenia: Australia: Azerbaijan: Bahrain: Bangladesh: Barbados: Belarus: Benin: Bhutan: Bolivia: Bosnia and Herzegovina: Brazil: Bulgaria: Burkina Faso: Cameroon: Canada: Chad: Chile: China: Colombia: Congo: Congo, The Democratic Republic Of The: Costa Rica: Côte D'ivoire: Croatia: Cuba: Cyprus: Czech Republic: … But in 2019-20 (October-September), China was the number one destination for Australian wheat, accounting for 15% of all shipments. Australia's wheat exports for … 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. Share. “If things stay bad in Russia, then we’re talking about a crop which will be diminished,” said Whitelaw. Log in or Subscribe to save article. 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. Canada, the US, and Australia are the three next top exporters of wheat, flour, and wheat products in the world. Moving such a large volume of grain this year may pose challenges. Those are markets traditionally supplied by Russia and Europe, and Australia doesn’t normally sell into them because of the freight costs. 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. “Not only do we have a bumper crop, but we’ve also got the potential for poor crops” in other parts of the world, he said. This map shows which countries export or import more of Wheat.Each country is colored based on the difference in exports and imports of Wheat during 2018.. Growers set to harvest second-biggest crop ever after rains, Weather issues in northern hemisphere open way for sales. Australia’s chemical industry has expanded significantly in recent years, now accounting for around 3.2% of Australian exports. Wheat is another top agricultural export with the country exporting over 16 million tons in 2016 according to the Australian Bureau of Agricultural and Resource Economics and Science (ABARES). We currently export more agricultural products than we import, with around 65 per cent of Australia's total agricultural production sent overseas. Stretched capacity could mean traders are less willing to buy grain shorter term, if abundant supplies are available down the track, Whitelaw said. During the last five reported years the exports of Australia have changed by -$15.1B from $263B in 2013 to $248B in 2018. 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Australian wheat classes deliver grain of consistent physical quality, processing performance and end-product quality. “Not only do we have a bumper crop, but we’ve also got the potential for poor crops” in other parts of the world, he said. Australian wheat exports are also expected to more than double to 20 million mt in 2020-21 from 8.5 million mt in 2019-20. Australia is one of the world’s biggest exporters of the ubiquitous staple used in everything from bread to cakes and pasta, and this year the country’s on track for its second-largest crop ever — more than 30 million tons — after widespread rains turbocharged production. The wheat is grown on large scale plantations in Western Australia, South Australia, South Wales and … Have a confidential tip for our reporters? Save. “I actually don’t see many headwinds at the moment,” he said. Prices found support, in part, from record global imports and consumption in 2020/21. 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