Outlook for Grains

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Outlook for Grains

• Vince ODonnell
• abare

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Winter crop production
Mt
3

• Changing nature of the industry

• Changing demand
• Biofuels
• Feedgrains

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World grain and oilseed prices
soybean
wheat
corn
2006-07 US/t
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World wheat consumption
Feed
Food
Mt
6
World stocks coarse grains
rest of world
United States
China
Mt
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US corn used for ethanol
Mt
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EU industrial use of vegetable oil
other
soybean
rapeseed
palmoil
Mt
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Australia
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Equity and farm incomes grain farms
Low equity -ve income
Low equity ve income
Hi equity ve income
Hi equity ve income

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Australian grain prices
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• Summary

• Short term
• improved production
• Medium term
• world prices to increase
• Biofuels - a major factor in the world
  grains markets

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