As explained, given the projected in 2017/18 MG reduce wheat production in Australia to an eight-year low (21.64 million tons according to estimates of Ministry of agriculture), local farmers keep its sales that led to increase domestic prices of grain to a level above that of the world.

So, this week the price of Australian standard belozernoe wheat of the new harvest on the market South Asian countries reached $245 per ton C&F, while North American grain of the same quality is offered at $235 / tonne C&F, and black sea at $215 per ton C&F.

According to traders, this situation is atypical for this time of year and can lead to the fact that the competitiveness of Australian wheat in 2017/18 MG is very limited.