Is Australia the end of the world or the tail that wags the dog? While Australia is a significant exporter of grains to the global food and feed markets is it a price taker or price setter? Australia a first world country with third world logistics how is this impacting competitiveness of Australian grain exports? Are global grain & oilseed markets in a new paradigm driven by Chinese demand and emerging exporters Brazil, Eastern Europe and India? Is price now more important than quality?
Grains markets are a puzzle the market solves every day made up of supply at multiple origins, demand at multiple destinations and delivery economics to make these balance, sometimes Australia is a key driver of this puzzle and other times it has little relevance. Understanding these market drivers are critical to keep in mind when setting marketing plans for both farmers and commercial exporters.