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Ukraine war pushes grain prices up, poses ‘moral conflict’ for Australian farmers

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World wheat costs peaked at document ranges final week, with the Russian invasion of Ukraine impacting grain exports from the Black Sea for the foreseeable future.

However what does this imply for Australian farmers? 

Though the Australian wheat worth has not risen to the identical extent, there was a big upswing with the crop promoting for near $400 a tonne.

Ariah Park grain grower Matthew Dart stated it was tough to justify the windfalls to be made on the rising market conserving in thoughts the human affect of conflict.

“You are attempting to make financial selections … and then you definately consider the truth of this case, and also you assume does that basically matter.”

A woman and man stand with their two children in front of a piece of machinery.
Ariah Park grain grower Matthew Dart (proper) says the human toll of conflict is entrance of his thoughts. (Equipped)

Costs rise for rain-damaged grain

He stated he was capable of promote a few of their feed high quality wheat from final yr’s moist harvest at escalated costs.

However he was cautious of locking in bodily supply wheat contracts for subsequent season’s crop, regardless of the near $400 a tonne costs on provide.

“Whereas it is actually been a really moist summer season and there is a profile of moisture there … there’s nonetheless frost, mice, grasshoppers, moist harvests, all this stuff in entrance of us.”

Headers, trucks and tractors operate on wheat paddock near Inglestone, southern Queensland, October 2021.
Australian farmers have been capable of promote rain-damaged grain for a lot better costs in current weeks. (ABC Information: Nathan Morris)

Unattainable to choose high of the market

Grain dealer Machallie McCormack stated she was seeing extra curiosity in ahead contracts than typical right now of yr because of the rise in costs.  

“At this stage of the sport, often none of my growers are taking a look at ahead promoting,” Ms McCormack stated.

“I’d say I’ve had inquiries for perhaps 10 per cent of my growers.”