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Wednesday, May 13, 1998

Australian milling wheat market remains steady as grain keeps coming 

REUTERS  
MELBOURNE, May 12: The Australian milling wheat market was generally steady over the past week, the Australian Wheat Board (AWB) said in its weekly grain market report.

Grain was coming in from the country at a regular pace, it said.Bids at A$180 a tonne delivered Melbourne and Newcastle and at A$185 delivered Brisbane were being recorded, it said.

Feed barley prices have eased, trading at A$160 a tonne delivered Melbourne and A$140 on farm in northern New South Wales (NSW), it said.

Sorghum prices had eased following the opening rains. Trade remained thin, with farmers holding on to stocks and waiting for prices to rise, it said.

A lot of grain was thought to be held on farm and it could be some time before prices rise significantly, it said.

Canola bids strengthened last week due to the lower Australian dollar and a rise in international prices, it said.

International prices were being supported by a continuation of dry weather in Canada, it said.

"Traders commented that with the dry spell inCanada growers are holding off planting and if the delay runs too long they will switch over to wheat or barley, compounding the effect of a tight stocks situation," it said.

Low world oil supplies have also set international canola prices on a bullish path, it said.

Australian prices delivered Port in Victoria and South Australia rose A$17 a tonne to A$395. Canola plantings were under way with expectations of a big crop being enhanced by excellent weather in most parts of Australia and healthy prices in relation to most other crops, it said.

Pulse trade remained very thin in Australia as farmers concentrated on putting this year's crop in the ground, it said.

Buyers were thin although the AWB had been in the market for chickpeas at A$325 delivered Port in the east.

Prices had come back from as high as A$380 a tonne six weeks ago.

Field pea bids of A$210 a tonne on far have been recorded, while beans had been raising similar bids, it said.

The fundamentals for pulse markets looked good,especially compared with some other grains. Pulses in most parts of Australia had the luxury of a very wide planting window and it was expected that many farmers would opt for an extra pulse paddock if current prices held, it said.

Lupins had been affected by fallout from the Asian crisis as demand for feed grain, especially in Korea, fell off, it said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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