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Feed Grain Prices Surge Throughout July

27 July 2012, at 7:40am

AUSTRALIA - Australian feed grain prices increased dramatically in July, underpinned by developments in international markets, reports Meat and Livestock Australia.

Feed wheat prices delivered Sydney averaged A$286/tonne during July, increasing 18 per cent on the same time last year and surpassing the A$300/tonne mark in the final week of July for the first time since the middle of October 2010 (The Land).

In what is being described as the worst drought in 50 years, the ongoing hot conditions across the US corn belt continues to drive the rise in grain prices, while dry weather in Russia and wet conditions throughout the UK is also placing pressure on feed grain supplies.

Feed barley (A$248/tonne) and triticale (A$272/tonne) prices also rose during July, increasing 11 per cent and 18 per cent, respectively, on the same month last year. While the surging grain prices are great news for grain producers, the rising prices will challenge those livestock producers reliant on supplementary feed, particularly those in the lotfeeding industry.

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