THE world is in no danger of running out of grain, despite the lowest stockpiles in 30 years and concerns about food security.
Australian Farm Institute executive director Mick Keogh said the growing affluence of the developing world and the demand for biofuels, as well as the weather, were behind the substantial price rises in international wheat, dairy and oilseed prices.
The US Agriculture Department estimates that world wheat stocks, at the end of the current crop year, will fall to their lowest level since 1977-78. Two weeks ago, the Australian wheat crop was downgraded from 22.5 million tonnes to 15.4 million.
"The minute it became apparent that Australia's wheat harvest was going to be reduced, the Chicago Board of Trade wheat futures price increased very quickly," Mr Keogh said yesterday. "Australia is a major grain trader, a major beef and sheepmeats trader, so a small change in what we do can have a big impact on world markets."
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http://www.theaustralian.news.com.au/story/0,25197,22489361-30417,00.html