Wheat Trade Collaspes - AU

[megabear]

Found at: Wheat Trade Collaspes

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>>Wheat trade collapses

 

June 4, 2004 - 12:30PM

 

Rural and regional Australia continues to struggle on the export front, with the nation's trade performance slipping on a scale unseen for 20 years.

New figures released by the Department of Foreign Affairs and Trade showed some of the nation's most important exports slumping in the face of both domestic drought and international economic downturn.

 

The most significant change in Australia's trade during 2003 was the fact wheat was not in the top 10 exports for the first time since official records started being kept in 1969. Wheat exports slumped 41.6 per cent to $2.4 billion, ranking it 11th and just ahead of natural gas and refined petroleum.

 

Just two of Australia's most important exports improved during last year.

Non-monetary gold exports climbed 10.4 per cent to $5.8 billion, while wine exports were up 0.3 per cent to $2.5 billion. <<

[threadbare]

Food prices continue to rise on world grain shortage

 

 

 

- 07/05/2004 - Food makers and ingredients firm across the world are currently affected by the rising world price for basic food commodities. In each of the last four years world grain production has fallen short of consumption, forcing a drawdown of stocks for wheat, rice, corn and soybeans. Lester R. Brown at the US-based Earth Policy Institute predicts food prices will likely be higher in the second quarter as soybeans have recently hit 15-year highs and wheat and corn 7-year highs.

 

http://www.foodnavigator.com/news/news-NG.asp?id=51953

 

Megabear, I posted this on B-4 the Bell the other day.

[megabear]

I thought it was interesting that Australia's surplus with Japan fell 50%. Could Japan be economically aligning itself with China at the expense of it's kissin cousins Aussy/UK/US?

[alceringa]

It didn't rain enough throughout Australia to grow much surplus wheat. Simple as that. Most food exports were also affected, but wheat production was only about 40% of "normal". There was very little wheat available for export after domestic consumption was satisfied. Throw in disruptions with the Iraq market, which had been the single largest export market for Aussie wheat and the farmers ended up with a real disaster.

 

The change in the trade surplus with Japan is a bit mis-leading. Due to a realtive strong domestic economy, imports into Australia of finished goods from Japan grew, while many raw materials normally sold to Japan went to China instead. Net affect is an apparent "loss" of trade surplus. This doesn't represent any change in geopolitical strategy by Japan, but rather the vagaries of the market statistics, IMO.