According to industry analysts, farmers in Western Australia in Australia in 2009/10 may face a 50% drop in wheat prices. The current wheat price has fallen by 50% from 460 US dollars two years ago.
The strong Australian dollar exchange rate and high wheat production in the world will lead to a sharp drop in wheat prices.
The Western Australian Farmers' Association stated that this year's wheat production in Western Australia may reach 9 million tons. The outlook for wheat prices is not clear because the wheat in the northern hemisphere is booming and the exchange rate of the Australian dollar is also strengthening.
Farmers currently need good rainfall. All current issues are focused on the scale of yield. If the yield is improved, then the income of farmers will increase accordingly.
According to the latest report released by the Rabobank Australia Company, this year's Australian wheat production is expected to be 22.8 million tons, which is in line with the earlier forecast.
(Li Lei is for reference only)