Global market conditions, page-3

This is part of an article from 'The Australian' of 26 January 2021.

GNC is not the sole Australian handler/exporter of cereals - across in the West, CBH looms large and there's also Cargills/AWB, Emerald Grain and others - but GNC has a high market share on the east coast of Oz so the paragraphs below buttress what has been discussed on 'HC' about GNC's bright short and hopefully medium term future:

'...A $4.9bn or 16 per cent increase in December 2020 brought total goods exports to $34.9bn. “The main drivers were increases to metalliferous ores, cereals and coal,” Ms Hutt said.

Wheat and barley drove the jump in cereals exports, with wheat up $604m or 423 per cent and barley up $182m or 254 per cent despite China’s official ban on Australian barley imports.

On a year-on-year basis, Australia’s cereals exports to China rose by $241m or 681 per cent.

Exports of wheat to China were $250m, after zero exports since August 2020.

“This represented one-third of the total wheat exported from Australia in December and 88 per cent of the total cereal exports to China,” the ABS said.

It was the largest monthly wheat export on record to any single destination country.

Some 42 per cent of December’s barley exports headed for Saudi Arabia.

“Strong growing conditions in Australia’s wheat belt and lower than average rainfall in the Black Sea growing region has driven demand for Australian wheat to record highs,” Ms Hutt added.

Russia is the world’s largest wheat exporter.