Australia exported a record large 3.8 million tonnes of wheat in March

Recently released government export trade data showed Australia exported a record large 3.8 million tonnes of wheat in March. This comfortably exceeded the previous record of 3.25mt set in January.

China remains the largest export destination by some margin with March shipments exceeding 1.1mt. Vietnam was the next largest destination with around 387,000 tonnes. Indonesia, Thailand, and Philippines all took more than 300,000t of Australian wheat in March.

Australia has shipped close to 16.6mt of wheat from October to March, representing the first six months of the 2022-23 marketing season. This is more than 2.5mt ahead of the same period in the 2021-22 season, which was easily Australia's largest wheat export season.

All states contributed to the monthly export record set in March. Western Australia accounted for around 1.25mt of wheat exports. More than 800,000t of wheat were also shipped from both New South Wales and South Australia for the month.

Queensland wheat shipments for March remained strong at around 277,000t. Around 1.4mt of wheat have been exported from Queensland in the first six months of the 2022-23 marketing season, 28 per cent more than a year earlier.

East coast grain exports are expected to be sharply lower in the second half of season as dry weather becomes more of a concern, particularly for Queensland and New South Wales.

Queensland grain prices continued to edge higher last week with the dry weather concerns and slow farmer selling. Feed barley bids firmed $10 to $440 delivered into the Darling Downs. Traders are now pulling barley from central west New South Wales to cover commitments into Queensland feedlots.

Northern farmers remain anxious for rain.

There is a growing divergence between the northern grain prices and southeastern Australia where values are feeling the pressure of the weakness in global markets. A favourable autumn break for southern New South Wales, Victoria and South Australia is also pressuring southern grain values.

Traders are reporting that Melbourne is well offered with barley at $360 with farmer selling picking up in the past week. Southern wheat markets remain reserved as well, with buyers reluctant to pass on last week's bounce in the United States futures markets.