![Table 1: Queensland grain prices. Source: Lloyd George. Table 1: Queensland grain prices. Source: Lloyd George.](/images/transform/v1/crop/frm/gCii2676WpkhR8KAvZ8bkq/35f4075b-f64e-4777-bf4f-b70c4441abfa.jpg/r0_0_5144_3197_w1200_h678_fmax.jpg)
Local values fell last week, following Chinese media reports that Beijing may ban a range of Australian goods - including wheat.
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Australia has emerged as China's 'whipping boy', as Beijing trumpets its message to trading partners not to meddle in its domestic affairs or trade with China will suffer.
Trade tensions with China sourced after Canberra pushed for an international inquiry into the origins of the coronavirus, following the outbreak in Wuhan.
China has already placed bans - or restrictions - on Australian beef, barley, sugar, lobster, red wine and coal. It appears wheat will be next.
ASX wheat futures tumbled $12 per tonne last week to finish at $306/t on Friday, after reports of the Chinese ban on Australian imports surfaced.
Exporters are assessing where the 1.2-2 million tonnes of wheat sold to China in a typical season will be re-routed.
Broadly speaking, alternative markets will be further-afield destinations - including Africa and the Middle East.
Australian wheat is viewed as one of the cheapest export origins in the world, following last week's market declines, and it is starting to compete into non-routine destinations.
Pakistan has emerged as a significant wheat importer this year, and its expected that Australia may fill some of this demand.
Grain prices into Southern Queensland came under additional pressure, as more feed wheat starts to find its way into the Darling Downs feedlots.
October rain has downgraded most unharvested wheat crops in southern Queensland, which is expected to result in some sizable volumes of feed wheat.
Stockfeed wheat bids tumbled $20/t to $290/t delivered into Darling Downs destinations, and feed barley slipped $10/t to $255/t delivered.
New crop sorghum bids were unchanged at $317/t delivered into Downs packers.
Traders are saying export demand from China is supporting sorghum prices.
Grain harvest pace is picking up in New South Wales, following a week of mostly dry weather.
Traders are reporting significant harvest progress in northern NSW and extending into the Central West and Riverina regions.
Wheat quality in northern NSW has seen grain of high protein, with isolated pockets of feed wheat.
GrainCorp did not release a harvest report last week.
Global wheat markets continue to be supported by the ongoing uncertainty of Russia's 2021-22 winter wheat crop.
United States wheat futures ended the week 1-2 per cent higher.
- Details: 0428 116 438 or lloyd@agscientia.com.au