Weak Dollar Helps Australian Grain Outlook

DONALD - Jul 3/01 - STAT -- Australian prices for cereal and coarse grains will benefit from the weakness of the country's currency, expected to average under 55 cents U.S. in the coming year.

The ability of the United States to compete effectively in world markets is being compromised by its unprecedented strength versus other currencies, suggests the latest market outlook from the Australian Barley Board (ABB).

The healthy state of the livestock sector has also increased of demand for feed grains on domestic markets, the board said. "This is good news for growers facing continual rises in input costs. It also presents a great opportunity for growers to lock in these good prices through forward contracts because eventually what goes up must come down."

This is reflected in the outlook for oats. The ABB said, "Last season we saw a hike in prices due to the poor season in Western Australia. Irrespective of the Western Australia outcome this year, good quality oats will be required and growers can expect better domestic prices."

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