GROWERS frustrated with low grain prices over the harvest period will be impressed with the recent rise in world prices.
But they won't be impressed with the rise of the Australian dollar.
In the past fortnight, US wheat markets have lifted US50 cents a bushel, an equivalent of $20 a tonne.
Global markets have been supported by hot, dry conditions in the US and a continuing lack of grower selling in Argentina.
In Europe, traders say cold weather is damaging crops.
The Black Sea is freezing over and shipping of grain from this source now requires a longer, more expensive rail-road freight in country covered by heavy snow.
Last week there were mixed reports from the Russian Government on the application of grain export taxes.
These taxes have previously lifted the price of Russian grain for world markets.
The Russian Government is sensitive to the rapid pace of exports leaving a shortage of domestic grain, which would drive up prices and encourage hoarding by sellers.
The Russian grain crop has been recently revised upwards to 93 million tonnes and 20 million has been shipped so far this marketing year.
Total Russian grain shipments are forecast to be 27 million tonnes this marketing year.
With the logistical restraints in the Black Sea region and the lack of grower selling in South America, Australia is increasingly seen as a source of grain able to be shipped.
While the price of grain has increased, the Australian dollar has lifted just under 5 US cents in the last three weeks to more than 107 US cents.
This has flattened the impact of high grain prices.
Since last week, APW wheat is $3 higher at $208/tonne in the ports of Geelong and Melbourne and unchanged at $215/tonne in Port Adelaide.
The higher grades of wheat and barley have suffered greater falls with H2 wheat tumbling $6/tonne in Victorian ports, and $3/tonne for southern NSW growers supplying exporters in Port Kembla.
There is strong interest from buyers seeking prompt delivery of grain.
Last week, some growers achieved $208/tonne delivered to Melbourne, and $209/tonnedelivered to Geelong for ASW wheat.
These deliveries require on-farm stocks of grain as warehoused stocks have not been suitable.
In a similar fashion, some of the highest prices for canola were $481/tonnedelivered to Geelong earlier this week yet some growers were able to fill shortages last week at $500/tonnedelivered to Geelong.
