Even though 2019 was a drier year than 2018, grain prices actually fell during the year. The simple reason for this was traders and end users of grain along the East Coast had learnt from the year before that they could import grain either from overseas or Western Australia which put a cap on East coast prices. Also, Victoria actually had a very good grain growing season and ended up producing a large amount of grain. This had the effect of depressing East Coast grain prices compared to the previous season. Grain prices at harvest were around $340 a tonne compared to $440 a tonne the previous year. The smaller crop in WA (compared to 2018’s near record crop) will mainly be exported either to the east coast of Australia or into Asia.
Since harvest, grain prices have risen helped by a falling dollar and a stronger world price. Forward prices for 2020 are currently very attractive.